The $23 billion Texas Permanent School Fund may increase its allocation with one fund of funds and is set to consider an allocation to an absolute return discretionary separate account fund of hedge funds manager in its November meeting.
It is thought that officials are also considering increasing an allocation to Mesirow Advanced Strategies due to good performance. Roughly $2 billion is set aside for absolute return investments. Mesirow currently manages $200 million in the portfolio, while other fund of funds managers are K2 Advisors, Blackstone Alternatives Asset Management, Goldman Sachs and Grosvenor Capital Management. The board approved a