The University of California has
increased its hedge-fund holdings by a factor of 10 since 2004,
even as the California Public Employees’ Retirement System, the
largest U.S. pension, said it’s pulling all $4 billion it had in
such investments because they’re too complex and too expensive.
Hedge funds account for $5.6 billion of the university’s
$90.7 billion portfolio, which consists mostly of a pension fund
and endowments, according to university records. UC had less
than $500 million in hedge-fund holdings a decade ago, the
records show...
Ted Eliopoulos, chief investment officer of $298 billion
Calpers, said in September that the pension would eliminate its
hedge-fund holdings and put the $4 billion into other
investments. The Oakland-based university system doesn’t plan to
follow Calpers’s lead, spokeswoman Dianne Klein said. “The performance of UC’s absolute return program has met
our objectives,” Dan Scannell, a university public-records
coordinator, said in a statement. “The role of the absolute
return strategy is to add diversification while lowering overall
volatility to the entity returns.”... The UC records don’t show the specific hedge funds in which
the university has holdings, nor do they show the cost of
administering the program. Klein said that information wasn’t
available...
Full story at http://www.bloomberg.com/news/2014-11-10/university-of-california-defies-calpers-on-hedge-funds.html
Well, the race for returns is bound to have some risks, right?
No comments:
Post a Comment