Funds of Hedge Funds Institutional Investors

Fresno slims allocation

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Fresno County (California) Employees' Retirement Association will now set aside only 5% to invest in funds of hedge funds as recommended by consultant Jeffrey MacLean of Wurts & Associates.

MacLean told trustees at the $2.5 billion pension fund last month that the dramatic changes in the capital markets during the last six months of 2008 make traditional investments much more attractive relative to hedge funds. The consultancy expects hedge funds will experience a "re-rationalisation" as institutional investors deal with the continuing fallout from the Madoff scandal and the associated deleveraging and decreased expectation for liquidity.

The extra 4% will