Wisconsin Alumni Research Foundation, Madison, is conducting an asset allocation and risk budgeting review overseen by Thomas Weaver, the $1.4 billion fund's new director of investment. Mr. Weaver said he is analyzing the entire portfolio. Asset allocation and manager changes are likely as he seeks to better balance the portfolio, which now has 80% in equities, he said. "That gives us a 98% risk allocation to the stock market, and that's likely to be changed through risk budgeting," he said. One likely outcome of the review is a new allocation to hedge funds, but Mr. Weaver said it's too early to predict changes he will recommend to the board of trustees. Cambridge Associates is the foundation's consultant.
Mr. Weaver joined the foundation at the end of last year, replacing Mark Bear, who retired Dec. 31 after 26 years at the organization. For the past five years, Mr. Weaver was senior investment manager of the $2.1 billion Fairfax (Va.) County Employees Retirement System. He was a principal of money manager Davis Weaver Mendelfor 15 years prior to entering public service. Laurnz A. Swartz, executive director of the Fairfax County fund, said Andrew Spellar, investment analyst - who was Mr. Weaver's second-in-command for investments - temporarily assumed Mr. Weaver's duties. Plan staff and trustees are assessing the issue of a permanent replacement, Mr. Swartz said.