DePauw University closes in on hedge fund manager selections

GREENCASTLE, Ind. — DePauw University is almost finished selecting hedge fund managers as part an overhaul of the $380 million endowment's asset allocation. The fund's hedge fund allocation was increased to 15% from 3%, and 17 to 18 managers are expected to be hired by April 1, said Carla McGuire, chief investment officer.

The fund cut private equity to 13% from 15% and raised real assets to 8% from 2%. It will review private equity and real assets (including real estate and natural resources) portfolios, and real asset searches are a possibility, she said.

Hennessee Group was hired late last year to advise on direct investments with hedge fund managers. Ms. McGuire said the university did not use a consultant to assist with other asset class changes.

NEW YORK — Hedge funds attracted a record estimated net global inflow of $60 billion in 2003 — $15 billion in the fourth quarter alone — compared with $16.3 billion in all of 2002, according to data from TASS Research. Strong inflows in 2003 led TASS researchers to increase earlier estimates of the total size of the hedge fund industry to between $725 billion and $750 billion.

The CSFB/Tremont Hedge Fund Index was up 15.44% last year, compared with 3.04% in 2002, according to TASS.

NASHVILLE, Tenn. — Van Hedge Fund Advisors International announced the addition of four broad strategy group indexes.

The Market Neutral Group index tracks returns of distressed securities, market-neutral arbitrage and special situations; the Long/Short Equity Group index includes Van's aggressive growth, market-neutral strategies, hedging, opportunistic and value indexes; the Directional Trading Group index includes returns of the Van macro, market-timing and futures indexes; and the Specialty Strategies Group index includes Van emerging markets, income, multistrategy and short selling indexes.

ANNAPOLIS, Md. — The $1.04 billion Anne Arundel County Retirement System is looking into alternative investments and hedge funds. New England Pension Consultants is conducting an educational program on the asset classes for the retirement plan's investment committee members and trustees, an official at the plan said. No timetable is set for any action.

TACOMA, Wash. — Russell Investment Group attracted $1 billion in new capital from institutional investors to its hedge fund of funds program last year. Russell now manages $100 billion overall and $2 billion in hedge funds of funds for investors primarily located in the United States, Europe, Japan and Australia, said Dave Tsujimoto, Russell's director of alternative investments.

LONDON — Martin Currie closed its $230 million Asia hedge fund and $430 million Japan hedge fund to new investors, according to a statement from the firm.

The Asia fund, managed by Jason McCay, returned 36.9% from its inception on July 18, 2002, through Feb. 23. The Japan fund, managed by Michael Thomas, Keith Donaldson and John Paul Temperley, returned 38.9% from its launch on June 30, 2000, through Jan. 31. Martin Currie manages six hedge funds.