Ontario Municipal Employees Retirement System, Toronto, will increase its hedge fund investment by US$228 million by the end of June, bringing the US$26 billion plan's total hedge fund investments to about 2% of total assets, said Lawrence Newhook, portfolio manager, alternative investments. The additional allocation will be placed in direct hedge fund investments; searches will be conducted internally.
The plan now has US$152 million invested in two hedge funds of funds, Mr. Newhook said. Staff members asked trustees to consider a total of 5% of plan assets in hedge funds, but trustees have not made a final decision, said Pat Trott, OMERS spokeswoman.
Mr. Newhook told attendees at the Global Alternative Investment Management 2004 conference in Boca Raton, Fla., last week that trustees authorized adding two more staffers to the system's three-person alternative investment team as part of an eventual move to bring much of the oversight of hedge fund investments in-house. The plan will have about one-third of hedge fund assets in direct hedge fund investments, with staff conducting monitoring and manager search activities. Whether the plan will promote from within or search outside for candidates has not been decided, Mr. Newhook said.