Ohio School Employees hires Oxford, OKs hedge fund rebalancing

Ohio School Employees Retirement System, Columbus, invested $35 million in the OxAm hedge fund, a relative-value quantitative fund managed by Oxford Asset Management, confirmed spokesman Tim Barbour.

Hedge fund consultant Aksia assisted.

Separately, the $10.5 billion pension fund’s board on Oct. 19 approved a rebalancing of one-third of its $1.5 billion hedge fund portfolio over the next two years.

The fund is looking to reduce the number of direct hedge fund investments in the $500 million segment to about 30 from 40 through asset shifts and new investments. Specifics will be determined in an asset-liability study due early next year.

Staff will “keep a similar number of managers in the equity long/short, event-driven, relative-value and tactical trading sectors. The intent is to distribute assets equally among these sectors as well,” Mr. Barbour wrote in an e-mail.

The changes are being made to generate low-volatility absolute returns and improve portfolio diversification, he wrote.