ATP, Hilleroed, Denmark, will restructure the 789 billion Danish kroner ($137 billion) pension fund's hedge fund-of-funds division, ATP Alpha, according to a news release by the fund.
Plans will include cutting ATP Alpha's 35-person staff by about half.
“The aim is to strengthen ATP's position in a challenging investment environment — with prospects of a prolonged period of low economic growth, low returns, considerable risk and tight financial regulation,” according to the news release.
As of Sept. 30, ATP had about 10.2 billion Danish kroner invested in its alpha portfolio. Since launching in 2006, ATP Alpha has delivered profits of about 1.5 billion Danish kroner, according to data provided by ATP.
Henrik Gade Jepsen, ATP chief investment officer, could not be reached by press time for further details about the restructuring.