Milwaukee Mulls Fund Of Hedge Funds Investment

Aug 3 2010 | 3:44am ET

Just as everyone else seems to be getting out of funds of hedge funds, Milwaukee’s $4 billion public pension plan is jumping in—eventually.

Two years ago, Mercer, the investment consultant to the Milwaukee City Employees, recommended that the pension move some of its money into alternative investments. And for two years, the plan sat on that recommendation, making its first foray into the space with a pair of private equity commitments totally $80 million in April. Now, the Cream City pension is planning its first hedge fund investments, but not until the end of the year, at the earliest.

Milwaukee first plans to invest in infrastructure and commodities. Its board will then consider hedge funds, Hedge Fund Alert reports. Mercer has recommended a 2% allocation, which would match its private equity allocation.

While no commitment has been made, Tom Rick, the plan’s chief investment officer, has already begun talking to funds of funds. He told HFA that, at least initially, Milwaukee will use funds of funds, rather than investing in hedge funds directly.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...