Wednesday, 31 August 2016
Last updated 13 min ago
Dec 11 2008 | 4:44am ET
Three Connecticut pension funds are set to begin investing in hedge funds despite the dismal performance most in the industry have suffered this year.
Despite being one of the top hedge fund centers in the world, Connecticut’s public pension funds do not currently invest in the asset class. But that is changing, as the Nutmeg State’s investment advisory council approved a plan to invest up to 8% of the three funds’ assets in hedge funds.
Connecticut’s public pension funds have been battered by the market turmoil this year, losing about one-fifth of their value since July. Connecticut State Treasurer Denise Nappier said the pension funds need the diversification hedge funds offer.
“This is the time to position our portfolio for the long term,” Nappier said. “I need that exposure as a diversifier.”
The three funds had $20.7 billion in assets at the end of October.