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.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

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

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of