Institutional Investors

Massachusetts to shave $1bn from HF portfolio


Trustees of the $40 billion Massachusetts Pension Reserve Investment Management Board are not only disbanding the fund's 6% allocation to portable alpha, but in voting to lower the hedge fund allocation there is a need to dump more than $1 billion in hedge fund assets.

The portable alpha programme had underperformed in 2008, which has been the case in other US state pension plans that have also been forced to revisit their programmes or dismantle them. In Massachusetts, the hedge fund allocation that totalled 11% of assets (6% portable alpha and 5% absolute return)