Sunday, 28 August 2016
Last updated 1 day ago
Jun 3 2008 | 10:47am ET
The $3.4 billion Fire & Police Pension Association of Colorado has hired GAM to manage a $57 million low volatility mandate, replacing Fairfield Greenwich Group, which was terminated due to performance and organizational reasons.
The plan is investing in GAM’s MultiDiversified LV, which launched in January. Half of Multi-Diversified’s portfolio is weighted towards arbitrage strategies and the balance is split between equity hedge and trading stratregies. The plan’s other fund-of-funds manager is Gottex Fund Management, which handles $110 million.
Colorado, which uses funds of hedge funds in its portable alpha program, could add a third fund of hedge funds shop to the mix now that Fairfield is out of the picture, according to a source familiar with the plan’s funding. The plan has another $75 million to allocate to its existing and/or new fund of hedge funds shops.
The plan is also investigating the direct hedge fund route but the source said it is not jumping into single-strategy hedge funds anytime soon because it does not have the manpower to monitor underlying managers.
Currently, 5% of the plans’ total portfolio is dedicated to its portable alpha program. Pension Consulting Alliance is its consultant.