Australian Pension Dumps Hedge Funds

Mar 7 2013 | 12:19am ET

Another institutional investor is quitting funds of hedge funds.

CareSuper, an Australian superannuation fund, will redeem it’s A$100 million from Fauchier Partners. The move will leave the A$7 billion pension manager with no hedge fund exposure at all.

The move is designed to save CareSuper on fees and to come into compliance with new Australian superannuation regulations.

"Hedge funds have not met our expectations and they are expensive," Greg Nolan, chief investment officer, told The Australian Financial Review. "Those two factors combined have led our board to decide to terminate the hedge fund managers we have."

CareSuper plans to replace its hedge funds with absolute-return managers offering lower fees, better liquidity and more transparency.


In Depth

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of