Wednesday, 31 August 2016
Last updated 6 min ago
May 27 2011 | 11:33am ET
A major New Mexico pension is using its large opportunistic credit allocation to load up on hedge funds.
The New Mexico Educational Retirement Board next month will approve $250 million in allocations to Waterfall Asset Management, HFMWeek reports. $150 million will go to the Waterfall Eden Fund, which invests in high-yield and distressed asset-backed securities, with the balance going to the Waterfall Victoria Fund, which invests in less liquid ABS.
In February, the $9.2 billion pension invested $150 million in GSO Capital Partners as part of its opportunistic portfolio, which does not count against its 10% target allocation to absolute return strategies.
New York-based Waterfall is an affiliate of MD Sass-Macquarie Financial Strategies.