The company is planning to transition its current hedge fund portfolio by adding more single manager hedge funds and redeeming some of its current fund of hedge fund investments in order to make the bulk of its portfolio concentrated on single manager hedge funds. It intends to allocate USD 20 million to each new investment and will add as many as 40 hedge funds in the move. It plans to redeem six of its current fund of hedge fund investments to make room for the new funds. Despite market turbulence during 2009 and suffering losses through one of its hedge fund investments, the Texas Treasury Safekeeping Trust Company remains positive about hedge funds and believes hedge funds are absolutely appropriate for an endowment portfolio. At this time it had a 20% allocation to the asset class and a mixture of fund of hedge funds and direct investments featured on its portfolio.
For more information on institutional investors in hedge funds, please see Preqin's Hedge Investor Profiles.