MassPRIM Seeks Savings From Hedge, Private-Equity Funds

Oct 22 2013 | 9:46am ET

Massachusetts' main public pension manager is set to make a number of changes to its alternative investments portfolio in an effort to save money.

The $53.9 billion Massachusetts Pension Reserves Investment Management Board is set to begin phase one of its Project SAVE, Pensions & Investments reports. And that's bad news for funds of hedge funds, whose share of the system's assets will be cut in favor of direct hedge-fund investments. MassPRIM estimates that the move will save it $40 million.

The pension is also taking advantage of contract renegotiations with some of its hedge fund managers, hoping to squeeze some fee savings out of them. And it plans to begin a private-equity co-investment program which would see it pay no fees at all.

MassPRIM is also investigating hedge-fund replication strategies.

Phase two of the project could see Massachusetts move money out of hedge funds and into passive and internally-managed strategies, according to P&I.

In addition to Project SAVE, the MassPRIM board on Friday also approved an additional $100 million investment in Cantab Capital Partners' Core Macro Fund.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

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

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

Securities and Exchange Commission Chair Mary Jo White will step down as chair of the nation’s Wall Street overseer in January, setting the stage for a potential conservative shift in the regulator’s leadership under the incoming Donald Trump administration.