Institutional Investors

China prepares allocation to hedge funds

by

China Investment Corp. is slated to expand into hedge funds as the sovereign wealth fund adds investment staff to diversify its $200 billion portfolio.

Officials are expected to allocate to a core group of up to five funds of hedge funds and an unspecified number of single manager hedge funds across a wide spectrum of strategies. According to press reports the group is considering a $500 million investment with Blackstone and taking direct stakes in Renaissance as well as having talks with well-known US hedge fund managers.

Felix Chee, former president and chief executive officer