Hedge Funds
The pension plan also adopted a new asset allocation policy for its $141.8 billion Core Trust Fund last month.
The plan will add new firms to its hedge fund portfolio over the next 18 months as it looks to adopt the second version of its strategic partnership program.
The retirement system will consider six commitments totaling $265 million at Thursday’s investment committee meeting.
The retirement system fully redeemed its investment in the manager due to underperformance.
The system approved revising the asset allocations for its endowment and liquidity pools after reviewing the allocation strategies for both pools in recent months.
The retirement system also recently made commitments totaling $585 million.
The plan made several changes as part of a total equity structure review at today’s board meeting.
Many endowments, foundations and their allocators point to relatively small or medium-size private equity buyout and early-stage venture capital for returns that outpace the public markets, while private real estate, infrastructure, hedge funds and private debt, especially asset-based lending look like strong portfolio diversifiers in this year’s mercurial environment.
The retirement fund received three proposals in response to an RFP issued in May 2024.
Nonprofit investors and allocators are tempering expectations for their portfolios in 2026 as they prepare for more moderate returns resulting from increased volatility and heightened valuations along with persistent macroeconomic and geopolitical uncertainties.