Oklahoma Tobacco Settlement Endowment Trust, Oklahoma City, is "actively exploring" the possibility of investing in market-neutral hedge funds, said Ken King, deputy state treasurer. The $189 million trust has not invested in any hedge funds; however, the state's prohibition on tobacco stocks could limit the trust investment board's options because many hedge funds could have minute exposure to tobacco stocks, Mr. King noted. If the asset class is approved, an RFP could be issued next spring. New England Pension Consultants is assisting.
Separately, the trust's board is considering six firms in its search for three equity transition managers that the trust could use as needed, Mr. King said. He would not name the firms. The trust's board will make selections after the candidates make presentations Nov. 10-11. No specific transactions are planned, Mr. King said.
The trust's asset allocation is 55% equity, 45% fixed income.