NY Makes Hedge Fund, Private Equity Commitments

Aug 8 2008 | 10:39am ET

Just days after calling for more exposure to alternatives, New York State Comptroller Thomas DiNaPoli is forging ahead with new commitments to a pair of hedge funds and a private equity vehicle.

The $153 billion New York State Common Retirement Fund has committed $300 million to TPG Partners VI. The fund has also allocated $10 million to equity hedge fund Passport II, which is a new relationship, and $2 million to Xerion Fund, an event driven focused fund.

The fund posted a 2.56% return for the 2007-2008 fiscal year, but according to DiNapoli, it could’ve done better if not for the fund’s constraint on alternative investments.

DiNapoli said the fund’s strongest returns came from the private equity (24.84%) and equity real estate (14.75%), adding that its growth is “limited by constraints on how we can respond to market forces.”

“We could have easily maximized our returns closer to 4%,” he said at a news conference earlier this week. “It’s time to revisit the basket bill and give the fund more investment flexibility.”

Under New York’s legal list system, investments in assets classified as alternative, such as private equity, real estate and absolute return strategies, are limited to 25% of the total portfolio.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.