Institutional Investors

New Jersey increases alternatives allocation to improve risk-adjusted returns

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The New Jersey Division of Investment views alternative investments as a way to continue to improve the $68 billion pension fund's risk-adjusted returns.

The state's updated investment plan for 2010 and 2011 includes a boosting of the percentage allocated to hedge funds to 7% from 6.5% due to anticipated funding of new global macro strategies, which is expected to boost the overall return of the hedge fund portfolio. This is along with a gradual increase in leverage and a pick-up in event- driven opportunities. The Division of Investment also increased