Fund of Hedge Funds Institutional Investors

British Telecom adds $1.3bn to Hermes BPK

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The $74 billion BT Pension Scheme, sponsored by UK telecommunications giant BT, has taken further active steps in its allocation to hedge funds, shifting $1.33 billion as seed capital into its newly established Hermes BPK fund of hedge funds unit.

The money will be invested in two separate fund of funds vehicles, managed by a team headed up by Mark Barker and Gregory Knott, who joined from Pioneer Alternative Investments.

The scheme, which is run by Hermes Investment Management, has a target strategic allocation of around 13% for alternatives, with more than 5% being reserved for hedge funds. Rather