Institutional investors are regaining confidence in hedge funds and are looking increasingly towards the asset class to add risk-mitigated sources of returns to their portfolios over the course of 2010. As part of this revived interest in the asset class we have witnessed several institutional investors seeking hedge fund specific consultants and advisors over the first months of the year. These investors include Pennsylvania Public School Employees’ Retirement System, which has issued an RFP for a new consultant to assist with its 7.5% allocation to absolute strategies. The consultant will take on the role of specialty advisor with responsibilities to include due diligence, performance and risk monitoring and overall portfolio strategy. Other current and completed searches in the first quarter of 2010 include; National Pension Reserve Fund, the USD 22.3 billion Irish sovereign wealth fund which is searching for a dedicated hedge fund consultant to assist with a first time EUR 250-500 million allocation to fund of hedge funds; and Florida State Board of Administration which hired Cambridge Associates in January to assist in its maiden commitment to the asset class.
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