Newsquest Pension Scheme may target hedge funds in the next 12 month period

The GBP 300 million pension scheme of the second largest publisher of regional and local newspapers in the UK is considering increasing hedge fund allocation to help rebalance its portfolio. It is likely to invest through funds of hedge funds, although the specifics on the timeframe or size have not been determined yet. Last year Newsquest made its maiden hedge fund investment when it invested GBP 25 million in Stenham Universal Fund and GBP 15 million in Liongate Capital Management. It began investing in hedge funds to diversify its portfolio and to produce superior risk adjusted returns, following shortfalls in pension assets.

For more information on institutional investors in hedge funds, please see Preqin’s Hedge Investor Profiles.