Knowledge Foundation on lookout for hedge fund-of-funds, equity and bond managers

Knowledge Foundation, Stockholm, is searching for discretionary hedge fund-of-funds managers, global equity/bond managers and Swedish equity/bond managers, said invitations to tender on Swedish purchasing website TendSign.

Regarding the hedge fund-of-funds search, the Swedish kronor 9.3 billion ($1.1 billion) foundation said in the invitation to tender that it places "great emphasis on a manager's ability to construct consistent portfolios with very low correlation to equities and long-dated fixed-income securities."

Regarding the other two searches, the foundation said it "places great emphasis on a manager's ability to timely change relevant allocations between equities and fixed-income instruments, as well as on how much the manager has proven to deviate from the strategic allocation of its relevant benchmarks. Of significance is also a manager's stock-picking capability and skill to have a large number of truly active positions in a portfolio without a very high risk compared to the benchmark."

For all three searches, the foundation said it is "looking for managers that care for sustainability issues in a broad sense."

Initial allocation sizes have not yet been determined.

Until the end of 2016, most of the foundation's portfolio was managed internally. Moving forward, the foundation's board of directors wants the majority of the portfolio to be managed externally under a new investment framework, the foundation said in the procurement documents.

The invitations to tender are available on TendSign's website. Interested firms may apply for one or all mandates. Hedge fund of funds and global equity/bond proposals are due by Aug. 22 at 5 p.m. Central European Summer Time. Swedish equity/bond responses are due by Aug. 25 at 5 p.m. Central European Summer Time. A timeline for hiring decisions could not immediately be learned.

A spokesman declined to provide additional information because the searches are ongoing.