More first-time investors in hedge funds are allocating to the strategies directly, rather than choosing hedge fund-of-funds (hedge FoFs), as investment talent circulates among institutions and investors observe the passive approach that many hedge FoFs apply to their portfolios. Simon Ruddick, managing director of hedge fund consultancy Albourne Partners spoke with Simon Mumme about this trend and the challenges of investing directly.
The £27 billion ($44 billion) Universities Superannuation Scheme has made three new appointments and reorganised its equities team with a new dedicated global emerging markets capability, the first internal restructure under new chief investment officer Roger Gray.
The $70.5 billion Washington State Investment Board has prioritised hiring the best managers in public equities and is willing to sacrifice the number of active investment relationships in lieu of the managers it believes are “truly exceptional” as it enters 2010 with plans for global manager searches.
The $206 billion California Public Employees’ Retirement System (CalPERS) set its investment strategy roadmap for 2010 at a board offsite last week, as chief investment officer, Joe Dear, attributes strong gains in 2009 to a “sharpened investment focus”.
The Kansas Public Employees Retirement System is slowly reducing its exposure to global equities as it explores “just about everything else”. Amanda White spoke with chief investment officer Robert ‘Vince’ Smith about the fund’s plans for 2010 which include an asset/liability study and the reorganisation of its equities allocations.
In this research brief, Tim Barron suggests the entire notion of the “new normal” being somehow different is an exaggeration or an embellishment. He says there is nothing “new” about this normal but it is more appropriately described as “back to normal.” And, that if it lasts for three or more years, it will then be viewed as THE normal and we will become adjusted – until it changes again.