The Texas Permanent School Fund's effort to cut back on its funds of hedge funds is nearing completion.
The $25.9 billion endowment is poised to fire two of its remaining four funds of funds, GAM USA and Mesirow Advanced Strategies, shifting all of its fund of funds portfolio to Blackstone Alternative Asset Management and Grosvenor Capital Management. Those firms benefited earlier this year from the fund's termination of K2 Advisors and would split the roughly $660 million currently managed by Mesirow and GAM, Pensions & Investments reports.
The termination of GAM and Mesirow still needs to be finalized by the State Board of Education.
The two funds of funds would already be out on the street but for a clerical error: The fund's finance committee recommended firing the two in April, but failed to post proper notice in time for a vote by the Board of Education.