The $79.4 billion New Jersey Division of Investment is in the early stages of looking for commodity managers to handle approximately $3 billion of the system’s portfolio, according to spokesman Tom Vincz.
Vincz said the system is beginning to invest in commodities via commodity-linked notes and has already purchased some $300 million in these notes from Lehman Brothers and Merrill Lynch. However, the system is looking to accelerate its exposure to commodities via actively managed products.
“We have intentions to look at managers, but not for several months, and are moving cautiously at the present time given the conditions in the market for commodities,” said Vincz.
The system recently made commitments of $100 a piece to private equity funds Silver Lake Partners III, Credit Suisse Customized Fund Investment Group and Fairview Capital Partners. It also allocated $75 million to hedge funds Airlie Opportunity Fund, LP and a $100 million to York Capital Management, LP.
Airlie Opportunity Capital Management, LP was founded by Dort Cameron III in February 2003 and currently manages $2.5 billion. James Dinnan founded York Capital Management in 1991. The firm offers a multi-strategy, event-driven investment portfolio.