Institutional Investors

Teesside pension mulls HF allocation

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The Teesside pension fund in the UK is thought to be reconsidering hedge funds as an asset class.

The $2.8 billion fund has been looking at alternatives as an asset class for some time and had built up a $77 million allocation, comprising $35 million in commodities, $25 million in infrastructure, $7 million in private equity and $12 million in others.

However, an asset liability study in 2007/2008 confirmed the board's aversion to hedge funds as an asset class. The same study recommended that the pension fund increase its exposure to growth assets such as equities, property and alternatives to