Avon Pension Cuts Two Funds Of Funds, Boosts Two Others

Mar 25 2011 | 11:29am ET

A British public pension fund has terminated one fund of hedge funds and significantly cut back on its investment in another.

The Avon Pension Fund, which manages £2.2 billion on behalf of Bath and North East Somerset Council's employees, redeemed its entire investment with Lyster Watson and slashed its investment with Man Investments by one-third, HFMWeek reports. The moves were part of a review of the pension's hedge fund allocations, which make up 10% of its portfolio.

Lyster had managed 5% of that hedge fund portfolio and Man 45%. The latter will now manage just 30%; Avon said the reduction was due to "significant change" at Man and the fact that its "underlying portfolio is highly diversified, which could dilute potential returns."

The winners were two of Avon's other hedge fund managers: Signet Group and Stenham Asset Management. The former will now manage 30% of Avon's hedge fund portfolio, up from 20%, and the latter 15%, up from 5%.

Avon also invests with Gottex Fund Management.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note