Thursday, 25 December 2014
Last updated 1 day ago
Apr 6 2011 | 3:51am ET
Massachusetts is quitting funds of hedge funds.
The Bay State’s main public pension plan said it would begin phasing out its use of funds of funds with $500 million in direct hedge fund investments. The Massachusetts Pensions Reserves Investment Trust, which has $49.5 billion in assets, $3.8 billion of which are in funds of funds, hired adviser Cliffwater yesterday to begin the transition.
The move will save part of the 0.84% in additional fees to funds of funds that Massachusetts pays. Instead, Cliffwater, which formerly served as the pension’s general consultant, will charge a 10% fee, yielding a saving of several million dollars initially. Cliffwater received a three-year contract.
“We like to have a direct relationship,” Massachusetts Treasurer Steven Grossman said. “We don’t necessarily need the middleman.”
Which, of course, is bad news for Massachusetts’ five middlemen, Arden Asset Management, Grosvenor Capital Management, K2 Advisors, Pacific Alternative Asset Management and Rock Creek Group. The direct hedge fund investments will be funded by reducing their mandates.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.