State of Wisconsin Investment Board, Madison, made seven direct investments in hedge funds totaling $507 million in the fourth quarter of 2017, spokeswoman Vicki Hearing said in an email.
The board, which oversees a total of $117 billion in assets, including the Wisconsin Retirement System's $108.5 billion, invested $230 million in King Street Capital, a long/short credit fund managed by King Street Capital Management and $70 million in Davidson Kempner Institutional Partners, a credit-oriented hedge fund managed by Davidson Kempner Capital Management.
The board also invested a total of $60 million in MW Eureka (U.S.) Fund VI, a long/short equity fund, and MW Japan Market Neutral (U.S.) Fund II, both managed by Marshall Wace; $50 million in BlueMountain Global Volatility Fund, managed by BlueMountain Capital Management; $42 million in PIMCO Global Credit Opportunity Onshore Fund, an opportunistic credit fund managed by Pacific Investment Management Co.; $30 million in Two Sigma Risk Premia Fund, an absolute-return fund managed by Two Sigma Investments. The board also invested an additional $25 million in Dorsal Capital Partners, managed by Dorsal Capital Management, in which SWIB originally invested $100 million in 2016.
The investments were made from SWIB's alpha portfolio in the Wisconsin Retirement System's $100.3 billion core trust fund. As of Dec. 31, the portfolio had $5.6 billion, or 5.6% of the core trust portfolio.