Blackstone, Grosvenor To Run Texas Permanent Direct Hedge Program

Apr 19 2012 | 12:33pm ET

The Texas Permanent School Fund's decision to dump funds of hedge funds in favor of direct investing hasn't proved a disaster for its funds of funds—not all of them, anyway.

In fact, two of them will be overseeing even more under the direct plan than they do now. The $24 billion endowment will ask Blackstone Alternative Asset Management and Grosvenor Capital Management to handle "strategic partnerships" that will handle the Permanent fund's $2.5 billion hedge fund portfolio. Currently, Blackstone manages $637 million and Grosvenor $770 million for the fund.

The other funds of funds currently running just over $1 billion for the Permanent Fund are not so lucky: They're to be terminated.

The plan, which could save the Permanent fund some $35 million in fees over the next five years, now goes to the Texas state Board of Education. The board will consider it tomorrow.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...