The $11.7 billion School Employees Retirement System of Ohio is in the midst of hiring its first hedge fund consultant. The system is currently mulling over a list of eight candidates and will recommend to its board a finalist at its investment committee meeting next month, according to Judi Masri, equities investment officer.
Masri said the length of the contract has not been determined but will be ironed out once the board approves the finalist. After hiring a consultant, the system will begin deliberating on direct investments in hedge funds of between $450 million and $500 million, she said, adding, “our board has given us up to a maximum of 10% of our total assets under management.”
“We’re leaning toward the direct route, which is why we’re looking for a hedge fund consultant to help us,” she said.
On the private equity front, the system currently has 3% of its total assets allocated to that asset class but its board in February approved increasing that allocation to 7%.