Nevada Schools Slash Hedge Fund Allocation

Oct 20 2010 | 12:49pm ET

Nevada’s public university system is cutting back on its hedge fund investments.

The Nevada System of Higher Education will liquidate the $105.8 million in absolute return investments in its operating pool. It’s a big move for the system: The hedge funds make up more than one-fifth of the pool’s $500 million, HFMWeek reports.

The move follows a recommendation from the system’s adviser, Cambridge Associates, which was “not entirely comfortable with the manager concentration in the portfolio as it currently stands.”

“Two managers is too few given the level of risk in this asset class,” according to the minutes from the board of regents’ June meeting. Those two managers are Farallon Capital Management and Och-Ziff Capital Management. NSHE will also redeem its investment in the Forester Diversified Fund.

The Nevada schools will maintain their hedge fund investments in its endowment pool. The system has $25.7 million invested in two hedge funds at the much smaller endowment.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

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

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR