Az. Mulls Seeding Program As Alts. Investments Continue Apace

Jan 14 2011 | 10:37am ET

An Arizona pension that has poured more than $200 million into hedge funds in recent months is preparing to jump into hedge fund seeding.

The Arizona Public Safety Personnel Retirement System plans to launch a seeding program by the end of the year, Hedge Fund Alert reports. The move would make the $6.5 billion system one of a few public pension funds to make seed investments in hedge funds.

Ryan Parham, chief investment officer, said that the pension's hedge fund consultant, Albourne Partners, would advise on manager selection but that few other details have been worked out. It is unclear, for instance, if Arizona would take a stake in the firms and a part of their profits, for instance.

Parham did say that the system is likely to favor former proprietary traders in seeking out seed investments. He also said that he's spoken to several other public pension funds which might become co-investors alongside Arizona.

The ambitious seeding plan comes after a busy few months of alternative investing for the pension. The fund most recent allocated $40 million to emerging markets debt fund Iguazu Partners, run by Wellington Management. Since November, Arizona has awarded mandates of $70 million to Bridgewater Associates, $60 million to Centerbridge Partners, $50 million to Davidson Kempner Capital Management, and $40 million each to Luxor Capital Partners and the LSV Special Opportunities Fund.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.