NY Pension Funds and Hedge Funds
NY Pensions Look to Allocate Again to Hedge FundsThree New York pension funds, representing city employees, firefighters and police officers--are looking to allocate to hedge funds. Specifically, these investors are inquiring about event driven hedge fund managers in light of all the recent volatility. The funds have previously invested in a number of hedge funds and still have an estimated $1.8 billion to invest in the asset class.
Three New York City pension funds are looking to event-driven hedge funds to help them reduce volatility in their portfolios.
The three pensions, which invest on behalf of the city's employees, police officers and firefighters, could invest in as many as 15 hedge funds, primarily event-driven strategies. Seema Hingorani, the head of public equities and hedge funds for New York City, said the three pensions have most of their hedge fund assets in global macro funds and commodity trading advisers, and it will consider some similar funds for the new allocations.
Long/short equity hedge funds will not be favored.
The three funds have about $70 billion between them. They have about $1.8 billion of their $3.5 billion hedge fund target left to spend, after investing in Permal Asset Management, BlueCrest Capital Management, Brevan Howard Asset Management, Brigade Capital Management, Caspian Capital Advisors and D.E. Shaw & Co. last year and early this year. Source