Thursday, 23 October 2014
Last updated 4 hours ago
Oct 4 2010 | 2:30am ET
The Florida State Board of Administration's taste for debt funds is proving a boon for hedge fund managers—and a boon that could be getting bigger.
The $117.1 billion pension plan has allocated money to seven hedge funds since June, when it boosted its strategic investment allocation—which includes distressed-debt and hedge funds—to 6% from 3.9%. The SBA plans to increase that further, to 11%, and is now searching for a risk modeler to provide risk measurement and monitoring models for its hedge fund portfolio, Pensions & Investments reports.
The big winner was Knight Vinke Asset Management, which received $250 million. The SBA also made four $100 million allocations, including to hedge fund P2 Capital Partners. The other nine-figure mandates went to three firms managing debt funds: Audax Group, Bayview Financial and Blackstone Group's GSO Capital.
The public pension also allocated $50 million to Oaktree Capital Management, and has approved an investment with CarVal Investors, which is pending. Consultant Cambridge Associates is still running several searches for direct hedge fund investments.
Responses to the invitation to negotiate for the risk modeling contract are due by Nov. 19.
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...