Hedge Funds Institutional Investors

West Midlands puts $49m in Old Mutual arbitrage fund


The UK's West Midlands Pension Fund has made a $49 million investment into the Old Mutual Global Statistical Arbitrage Fund, a single strategy hedge fund. With assets totalling $10.7 billion, West Midlands Pension Fund is one of the UK's largest local authority schemes and among the first to invest in such a strategy.

The Old Mutual Global Statistical Arbitrage Fund uses a proprietary quantitative model to screen real-time stock prices and exploit short term pricing anomalies across some 900 liquid, large cap equities globally. The fund plans to allocate 8% of a 25% allocation to "complementary" assets to absolute