Friday, 25 July 2014
Last updated 17 hours ago
Jul 13 2011 | 10:13am ET
A major Texas pension fund has poured more than $1 billion into more than two dozen hedge funds.
The Texas County & District Retirement System in March boosted its absolute return target from 15% to 20%, and wasted no time in spending that increase. The $18.2 billion public pension increased its allocations to 19 managers in its absolute return portfolio, HFMWeek reports, handing an additional $240 million to six long/short equity managers, $220 million to five multi-strategy managers, $140 million to two global macro managers, $120 million to three credit managers, $60 million to two event-driven managers and $30 million to a distressed investments manager.
But that wasn't all: TCDRS also added $170 million in new allocations to its separate distressed debt portfolio, hiring Avenue Capital Group, Davidson Kempner Capital Management, Sankaty Advisors and Victory Park Capital to manage $30 million each, and Oaktree Capital Management to manage $50 million.
TCDRS also added another $50 million to its investment with MKP Capital Management, putting $50 million from its opportunistic credit portfolio into the firm's Structured Credit Strategies. In December, the pension added $15 million to its then-$75 million investment in MKP's Credit fund.
The moves bring TCDRS' total hedge fund allocation up to 18.9%, or some $3.4 billion.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…