Institutional Investors

General Electric plans to take hedge funds out of isolation

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GE Asset Management, which manages the $42 billion GE Pension fund, is considering moving some of its hedge funds into the liquid return-seeking allocation of the overall portfolio, which also includes equity and fixed-income strategies.

Such a move would mean that hedge funds would no longer be housed as a separate asset class. GE is limiting the restrictions on housing hedge funds strictly within the alternative investment portfolio that generally places a hard limit on a percentage of assets dedicated to hedge funds.

According to GE officials, the investment staff at GE have been