Lyxor Nets CalSTRS Global Macro Consultant Contract

Dec 7 2011 | 10:15am ET

The California State Teachers' Retirement System has hired Lyxor Asset Management to help it build its global macro hedge fund strategy.

As the $148.2 billion public pension's global macro consultant, Lyxor will assist with the selection of three to six hedge funds for the portfolio over the next three years. The firm will also help CalSTRS establish investment policies, search strategies and manager assessments, among other duties, for the new program, part of the system's "Innovation Portfolio."

"In these times of economic volatility and uncertainty, it's important to diversify the CalSTRS portfolio into areas that protect against downside pressures," chief investment officer Christopher Ailman said. "We believe this strategy can help us accomplish this goal and Lyxor is vital to its inclusion into the CalSTRS portfolio during this trial period."

After three years, CalSTRS will decide whether to make the global macro strategy a permanent feature of its portfolio, to give it more time or to do away with it. The pension spent 15 months looking for a consultant for the job, eventually settling on Lyxor "because of its strong track record in thoroughly vetting and overseeing global macro managers and hedge fund portfolios for large institutional investors such as CalSTRS," Steven Tong, director of the pension's innovation and risk unit, explained.

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