Texas OKs Doubling Of Teachers' Pension Hedge Fund Allocation

Aug 1 2011 | 12:36pm ET

Texas has given its teachers' pension plan the freedom to invest up to 10% of its assets in hedge funds.

The state Legislature passed and Gov. Rick Perry signed last month the law giving the Teacher Retirement System of Texas the new authority. The $108 billion system had lobbied for the change, saying that the added flexibility could have helped it avoid more than $30 billion in losses during the financial crisis.

Prior to the new legislation, TRS was authorized to invest no more than 5% of its assets in hedge funds.

The law "puts another tool in the chest" of TRS' managers, state Rep. John Otto, one of its sponsors, told the Financial Times.

"I think there is a place for hedge funds if they are used properly and not used as a leveraging risk, as opposed to a leveraging against risk."


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note