Hedge Funds Institutional Investors

Philadelphia Board goes direct for debt


The Philadelphia Board of Pensions and Retirement is building out its debt exposure through single-manager hedge funds with new allocations to Advent and Regiment.

Advent, a convert arbitrage strategy, will manage $10 million, while another $10 million will go to the debt-focused event-driven strategy, managed by Regiment. Christopher McDonough, chief investment officer of the $3.6 billion municipal pension plan, said there are plans to add one or two more hedge funds before the year end.

Strategic decisions by trustees have focused on whether or not funds of funds on their own provide enough diversification, but cost concerns have