Rhode Island Jumps Into Hedge Funds

Nov 14 2011 | 11:04am ET

As it seeks to complete its new hedge fund allocation in near-record time, Rhode Island's main public pension fund has won approval to invest in a dozen hedge funds.

The Rhode Island State Investment Committee in September green-lighted the Rhode Island Employees' Retirement System's plan to invest in Ascend Capital, Brevan Howard Asset Management, Davidson Kempner Capital Management, D.E. Shaw Group, Elliott Associations and Och-Ziff Capital Management. A month later, the commission approved Capula Investment Management, Gracie Credit, Mason Capital Management, Samlyn Capital, Viking Global Investors and Winton Capital, Pensions & Investments reports.

What's more, the commission is expected to approve the hiring of six more hedge funds next month or in January. If it does, Rhode Island will have filled its new 15% allocation to hedge funds in less than six months, Kenneth Goodreau, chief investment officer of the $7 billion pension, said.

Brevan Howard and Och-Ziff each received $75 million from Rhode Island, while Ascend, Davidson Kempner and Elliott got $60 million. D.E. Shaw was allocated $50 million. Final allocations for the October hires are still unclear, although Goodreau said the mandates would likely be similar to those of the September hires.

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