CalSTRS adds 3rd global macro hedge fund manager
By Christine Williamson | January 14, 2013 3:38 pm
California State Teachers' Retirement System, West Sacramento, invested $50 million in hedge fund manager MKP Capital Management's global macro strategy in the quarter ended Dec. 31.
MKP Capital is the third hedge fund manager hired to manage one-quarter of the $154.3 billion system's $200 million global macro hedge fund portfolio, said Ricardo Duran, a spokesman for the fund, in an interview.
Earlier global macro investments were $50 million each to Bridgewater Associates and Alphadyne Asset Management made in December 2011 and June 2012, respectively.
Mr. Duran said a fourth global macro manager will be appointed, but he did not have additional details for the allocation.
CalSTRS' global macro hedge fund allocation is part of the fund's innovation and risk unit that was approved by the fund's board in March 2009 to research and test new investment approaches. The global macro investments are part of a three-year trial, which is being overseen by internal staff and Lyxor Asset Management, which was hired in December 2011 to provide consulting advice.
According to CalSTRS' third-quarter investment report, another $150 million has been earmarked for investment in commodities within the innovation portfolio. Mr. Duran did not have information about the commodities investments.