State of Hawaii Employees' Retirement System, Honolulu, will decide in the next month or two whether to invest in timber, said Stanley Siu, executive secretary.
If the trustees decide against the timber investment, they probably will increase the $8.2 billion fund's allocation to alternatives to 5% from 3%, with the intent of making more venture and private equity investments, Mr. Siu said. Abbott Capital is Hawaii's alternative investment consultant.
Scott Bettin and Timothy Palmer, portfolio managers who left Investment Advisers Inc. in March, formed Atlas Capital Management. The new firm will offer alternative bond strategies for sophisticated institutional clients, emphasizing market-neutral relative value in U.S. and international bonds.
Its strategies include hedging long bond positions with fixed-income futures and other derivatives and selling short bonds.
Atlas, which has no money under management yet, is close to landing its first institutional clients, Mr. Palmer said.
Southeastern Asset Management, which has closed two of its three mutual funds to new investors, hopes to start an international equity fund, said Frank N. Stanley III, vice president-investment. It hired an analyst for a Far East research office it plans to set up in Tokyo and is seeking an analyst for Europe. That analyst may be based in London or Memphis, Tenn. Southeastern doesn't know when it will begin the fund, but it could be by year end. It hasn't registered the fund with the SEC.