Friday, 22 August 2014
Last updated 12 hours 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 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note