Dutch Pension To Dump Funds Of Hedge Funds

Feb 12 2010 | 5:36am ET

A major Dutch pension fund is looking to redeploy more than US$1 billion from funds of hedge funds to direct hedge fund mandates.

PGGM, which manages the € 87 billion Pensioenfunds Zorg en Welzijn, plans to redeem all of its funds of hedge funds investments, which total about €1.2 billion, Pensions & Investment reports. The pension would then invest that money in single-manager funds, with risk management dealt with internally.

Fons Lute, managing director of alternative strategies at PGGM, said the pension’s fund of funds exposure—accounting for some two-thirds of its €1.7 billion hedge fund portfolio—was showing too much overlapping beta exposure.

PGGM is expected to award most of the new mandates by the end of the year.

The pension will not invest in either fixed-income or merger arbitrage funds. It will also limit its investments in market-neutral and equity long/short strategies.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note