Stichting Pensioenfonds TNO, Rijswijk, Netherlands, is conducting an invitation-only search for hedge-fund-of-funds managers 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. Selections are expected within the next three months.
"We were not happy with the performance of normal active managers and we wanted to look for diversification and less correlation, he said.
The pension plan hired alternative investment adviser Fund Partners to select and monitor the fund of funds. TNO is willing to use a wide variety of hedge fund strategies but wants a low correlation with its primarily euro-oriented core investment portfolio, said Jurcell Virginia, Fund Partners head of alternative business.