U.K. Universities Pension Plans Big Hedge Fund Investment

Jan 26 2010 | 12:38pm ET

A major British pension fund is increasing its hedge fund investments fivefold, pouring more than £1.4 billion pounds into the asset class.

The £28 billion University Superannuation Scheme said it would invest that amount in fixed-income as it seeks to reduce its 70% equity exposure. But the pension’s chief investment officer said it would move a similar amount into hedge funds, which currently make up just 1% of the fund’s investments.

Roger Gray, who took over as CIO less than five months ago, told Reuters that USS has made its first active hedge fund investment totaling in the “hundreds of millions” of pounds. USS will increase its hedge fund investments to 5% of total assets, meaning the pension may hire up to 30 hedge fund managers over the next two years.

USS will also continue to invest in a hedge fund replication strategy managed by State Street.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note