Stichting Pensioenfonds TNO, Rijswijk, Netherlands, hired alternative investment adviser Fund Partners to select hedge fund of funds to run 100 million euros ($108 million), or 8% of total assets, over the next three years. The 1.2 billion euro pension plan will allocate 15 million euros to hedge funds this year, TNO Director Eric van Ballegooigen said. "We were not happy with the performance of normal active managers and we wanted to look for diversification and less correlation, he said.
TNO officials are willing to use a wide variety of hedge fund strategies but want a low correlation with the funds primarily euro-oriented core investment portfolio, said Jurcell Virginia, Fund Partners head of alternative business.
Fund Partners is conducting an invitation-only search for the fund-of-funds managers, and selections are expected within the next three months.