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."

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