Illinois Teachers’ Asks Funds Of Funds For Help In Single-Manager Search

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.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR