Institutional Investors

Texas ERS considers emerging hedge funds


The Texas Employees' Retirement System has included hedge funds and absolute return strategies in its new investment policy that could possibly include hedge funds, initially via an emerging manager programme.

Earlier this year, trustees of the $20 billion retirement fund approved a 5% allocation to absolute return strategies.

The allocation would include investments in private funds that includes funds of funds or any other commingled vehicle that itself invests in hedge funds, according to the newly approved investment policy.

The investment objective of the new asset class would be the total time-weighted rate of return over rolling five-year periods