Teachers' Retirement System of the State of Illinois begins to implement new hedge fund strategy by making first new investment

by Nicole Rubbi-Clarke

  • 04 Jan 2010
  • HF

The USD 29 billion public pension fund has awarded hedge fund manager PIMCO with a USD 400 million mandate. The move came after an announcement in Q3 2009 that TRS would start looking for new hedge fund managers. This move follows the increase to hedge fund investments made by the board in May 2009 when it announced plans to double its target allocation to 5% of its total AUM. The move also marks the change in focus of its hedge fund portfolio. It plans to reposition its hedge fund portfolio into an absolute return strategy, with more asset allocated to equity market-neutral investments than to distressed investments. It hopes that the change will generate more stable returns and be less sensitive to the market conditions.

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