Saturday, 10 October 2015
Last updated 15 hours ago
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.
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…