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

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...