Institutional Investors

Wisconsin plots $1.3bn hedge fund allocation


The $68 billion Wisconsin State Investment Board is planning a 2% allocation or $1.3 billion dollar mandate in hedge funds that will focus on single manager hedge funds.

Investments in the new programme will be spread among 15 to 30 hedge funds with allocations going mainly to limited partnerships, but may also include to a small degree separately managed accounts. Statistically, approximately 95% of maximum volatility reduction is achievable via 13 underlying hedge funds, according to the report put together for trustees.

Once the portfolio is built out it