Tuesday, 16 September 2014
Last updated 16 min ago
Aug 14 2008 | 10:22am ET
Big changes are underway for the Fresno County (Calif.) Employees Retirement Association. The $2.7 billion pension plan has reportedly approved new allocations to hedge funds and private equity funds in hopes of boosting its portfolio’s returns.
According to published reports, the plan’s board allocated 8.7% to hedge funds and boosted its p.e. commitment to 7.1% from 6%. The new allocations are based on an asset-liability study from consultant Wurts & Associates.
“Recent hedge fund performance illustrates correlations to equities has been rising,” according to the study. “Hedge funds performance is lagging a T-Bills +5% benchmark. Given trends in the hedge fund industry, we conclude that 3.5% spread over cash is a reasonable conservative estimation of returns for hedge fund of funds, resulting in forecasted return of 7.5%.”
The study also forecasts a return of 10.7% for private equity over the next 10 years stating, “We expect private equity returns to revert to their historical average of approximately 2.5% over public markets.”
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…
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