The Fondazione Cassa di Risparmio della Spezia is redeeming its hedge fund allocation due to poor performance.
The $329 million foundation had a 3% allocation to the asset class which was handled by two fund of funds, Duemme Hedge Performance III and Ersel Multistrategy Low Volatility.
The foundation was unimpressed by their performance during the financial crisis. The Duemme fund was down 18.46%, while the Ersel fund was down 17.73%. As a result Duemme was redeemed at the end of 2008 and the Ersel allocation is currently being terminated. The foundation has no plans to invest in the asset