Tuesday, 30 September 2014
Last updated 8 hours ago
Aug 6 2010 | 11:08am ET
The Illinois Teachers’ Retirement System plans to expand the number of single-manager hedge funds it invests in from one to as many as a baker’s dozen. And the $33.1 billion pension is turning to its fund of hedge funds managers for help.
Rather than an open search and request for proposals, Illinois Teachers’ has asked K2 Advisors and Grosvenor Capital Management to work with the plan’s staff to come up with a 15 to 20 hedge fund shortlist. The pension will then invest in between two and four new hedge funds every year over the next two to three years, Pensions & Investments reports, following a rigorous due-diligence process.
Illinois Teachers’ plans to invest in equity and credit strategies first, according to P&I. The pension made its first direct hedge fund investment two years ago, allocating more than $300 million to Bridgewater Associates’ Pure Alpha fund. The plan’s new hedge fund hires will get at least $400 million in total.
R.V. Kuhns & Associates, Illinois Teachers’ consultant, will also work with K2 and Grosvenor on the shortlist.
Neither K2, which manages $519 million for the pension, nor Grosvenor, which manages $360 million, is in danger of losing their mandates after helping the system pick single-manager funds. But they may be asked to reallocate to other hedge funds if Illinois Teachers’ picks a hedge fund one already invests in.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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