Monday, 27 March 2017
Last updated 2 days ago
Jun 9 2011 | 1:02pm ET
Massachusetts' main public pension fund will make its first direct hedge fund investments in October under a plan approved on Tuesday.
The Massachusetts Pension Reserves Investment Management board will pick 10 managers in October and another 10 in December to manage a total of $500 million. The decision follows an earlier one to begin to cut back on funds of hedge funds in an effort to reduce fees.
MassPRIM currently has about $3.8 billion invested with funds of funds.
The first set of hedge funds will split $255 million and the second $245 million, with the first money actually reaching the funds in January. MassPRIM and consultant Cliffwater said they would focus on established, institutional quality hedge funds able to take on more capital as the direct investment program grows.
At the same meeting, the board approved commitments of up to almost $300 million to four private equity funds. Vista Equity Partners' Fund IV received a commitment of up to $150 million, Genstar Capital Partners' Fund IV up to $60 million, Quad-C Partners' Fund VIII up to $50 million and Index Ventures' Growth II up to €20 million.