Health Care Foundation of Greater Kansas City slates $82.5 million for alternatives

Health Care Foundation of Greater Kansas City made six new commitments and investments totaling $82.5 million, according to recently released finance and investment committee meeting minutes.

The $719 million Kansas City, Mo.-based foundation committed $15 million each to PIMCO Bravo III, an opportunistic real estate fund managed by Pacific Investment Management Co., and York Distressed Asset Fund III, a distressed debt fund managed by York Capital Management.

The foundation also approved direct hedge fund investments of $15 million and $12.5 million, respectively, to multistrategy funds managed by Arrowstreet Capital and HBK Capital Management, and $12.5 million each in alternative beta strategies managed by Capital Fund Management and Man Group. The hedge fund investments are the result of the committee's decision to restructure the hedge fund investments in its opportunistic strategies portfolio to direct investments from funds of funds.

The minutes said the foundation is currently invested in hedge funds of funds managed by Aetos Capital, Maverick Capital and Parametric Portfolio Associates. The minutes said "the timing of the move is ideal," citing good returns by Aetos and Maverick, and the foundation would be exiting "on top."

Investment consultant Aon Hewitt Investment Consulting assisted.