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

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...