San Jose Begins Search For Hedge Funds, Private Equity

Jul 25 2008 | 5:12am ET

The $3 billion San Jose (Calif.) Police & Fire Department Retirement Plan is taking the plunge into alternatives and will begin searching for hedge fund and private equity managers within the next few months. The plan’s investment committee met earlier this month to hash out its allocation to hedge funds and private equity funds.

According to Ron Kumar, financial analyst, the plan, which has a 5% allocation to absolute return strategies, will invest in core (multi-strategy and fund of funds) and satellite (direct investment) managers. The plan is also utilizing core and satellite positions in its p.e. portfolio, allocating $30 million each both mezzanine and distressed p.e. funds.

“Alternatives is a good way to mitigate volatility,” said Kumar. “Just look at what’s been happening in the last six months.”

The plan’s consultant, NEPC, will be submitting potential managers to the plan’s board in the next few months.


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...