Tuesday, 30 September 2014
Last updated 52 min ago
Aug 20 2012 | 11:57am ET
Massachusetts' state public pension system has moved more than half its hedge fund portfolio from funds of hedge funds to direct investments, and isn't looking back.
The $48.8 billion Massachusetts Pension Reserves Investment Management board has no second thoughts about its decision last year to all-but do away with funds of funds. "We were paying an extra 84 basis points over standard direct management fees on our funds-of-funds investments," Steven Grossman, Massachusetts state treasurer, told aiCIO. "On $5 billion, that's $36 million. We haven't been particularly happy with our returns on those investments. And with funds of funds, they do the due diligence, and we're simply more comfortable doing it ourselves."
So far, Grossman says, about 60% of MassPRIM's hedge fund portfolio consists of direct investments. "It's going well," he said. "We're steadily moving funds. Certain assets we can get at right away, others we have to wait."
And, he adds, "all indications so far say it was the right thing to do."
"You might as well own directly, get close to the source, keep due diligence internal, and save $36 million," he told aiCIO. "We're looking forward to cutting out the middle man and working closely with a group of 20 or so hedge funds that we've selected ourselves."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...