Danish Pension To Double Private Equity Investments, Increase Hedge Funds Allocation

Feb 9 2010 | 9:45am ET

Danish pension fund ATP is making a big move into alternative investments as its seeks to build a portfolio for “all weather.”

CEO Lars Rohde said the US$111.8 billion pension would double its allocation to private equity and pour up to 1 billion krone (US$183.7 million) per year into hedge funds. Currently, ATP has about 5% of its assets in p.e., a figure set to rise to 10%. Its hedge fund investments are managed by its internal alpha team, which currently has 5 billion krone (US$918.3 million) to play with.

Rhode told Reuters that his plan is designed to ensure ATP produces returns despite what the market may throw at it. But he warned hedge fund managers interested in a mandate that his expectations aside from returns are pretty high.

“I want to know what they are doing,” he said. “A fair structure grants transparency and, secondly, I will not go where we are paying all the costs and we would then share the gains”—ATP will seek clawbacks.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.