Fresno Boosts Hedge Fund, Private Equity Commitments

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.”


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

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

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.