New Mexico Jumpstarts Portable Alpha Program

Sep 20 2007 | 8:12am ET

The board of the $13 billion Public Employees Retirement Association of New Mexico last month authorized the first phase of the system’s portable alpha program.

PERA’s board set the alpha program, which is separate from the system’s current hedge fund strategy, at 5% of total assets and plans to increase it to 10% after 12-18 months, according to Robert Gish, PERA’s chief investment officer.

“We will be investing in 11 managers that have already been selected by our consultant, Cliffwater. They’re distressed, credit, event dirven, multistrategy and various combinations of other managers with low correlations to equities with $1 billion or more in assets,” said Gish. “In the alternative investment asset strategy, we’ve only funded about $400 million there so we still have about half a dozen managers left to select.”

Year-to-date, the system’s direct hedge fund investments have yielded a 7.1% return through August.

On the private equity front, the system this month approved up to $30 million in Wayzata Opportunities Fund II, a private equity fund that invests in debt instruments of distressed small- and mid-cap companies. It also approved an increase to its investment in the OCM Opportunities Fund VIIb from $15 million to $30 million. Both new mandates are being funded from PERA’s equities portfolio.

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...