Institutional Investors

World Bank mulls market-neutral


The $14 billion World Bank pension fund's hedge fund portfolio is undergoing a strategic shift as officials seek managers that can take new allocations in the market-neutral space.

The hedge fund portfolio team at the World Bank is considering managers in the event-driven/distressed area in addition to equity statistical arbitrage strategies that fall under the umbrella of market-neutral. The result is likely to be a shift in capital over the next couple of years from macro strategies that the in-house team, reporting to John Gandolfo, director, views as struggling. Gandolfo takes over from Gumersindo Oliveros, who joined KAUST Investment