US Pension Funds & Hedge Fund Managers

US Pension Funds

US Pension Funds & Hedge Funds

This article below states the obvious - pension funds are going to be "more careful" now while selecting hedge funds. During the recent crisis of 2008 many hedge funds shut down or faced heavy redemptions and losses which were not expected. This could hurt asset raising efforts over the next few years:

The love affair between U.S. pension funds and hedge funds is cooling.

After helping the hedge fund industry double their assets to $1.7 trillion over the last three years, pensions funds, in their search for plump returns, are reconsidering their commitments.

The pension funds have relied on hedge funds for years to help meet long-term obligations, but recent heavy losses at the loosely regulated portfolios are causing them to think twice.

"There are people saying 'Whoa, wait a minute here,' and public funds are very much reassessing their plans to invest in hedge funds," said Richard Ennis, chairman of investment consultants Ennis Knupp & Associates.

"There is a sense now that pension funds will be much more discriminating in which hedge funds they pick," he added. Source

In the short term, investment committees at some pension funds are stepping on the brakes, if only temporarily, worried over worst-ever returns and long investment lockups, according to industry insiders.

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Tags: US Pension Funds, US Pension Fund Groups, US Pension Fund, US Pension Funds Investing in Hedge Funds, Which US Pension Funds invest in Hedge Fund Managers

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