Fairfield May Not Invest With Brevan Howard

Aug 30 2011 | 12:03pm ET

One Connecticut pension plan is having second thoughts about Brevan Howard Asset Management.

The Town of Fairfield Joint Retirement Investment Board voted to award its first-ever commodities mandate to the hedge fund in May. But now the $273 million public pension has placed that award under review following due diligence conducted by its consultant.

Indeed, it seems likely that Fairfield will junk the planned $9 million Brevan Howard investment entirely: It has asked the consultant, Callan Associates, to "come back with recommendations on other commodities managers," HFMWeek reports.

After looking into the Brevan Howard Commodities Strategic Master Fund, Callan expressed "reservations," noting that the fund is "energy heavy." Brian Vahey, a member of the Fairfield board, told HFMWeek that "the board likes lower volatility."

Callan did have some nice things to say about Brevan Howard, saying its model "makes sense" and praising the firm's "strong risk management."


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat