Alaska Permanent Fund Corp., Juneau, will soon search for at least one hedge fund-of-fund and/or multistrategy managers to run a total of $400 million, said Mike Burns, CEO. Consultant Callan Associates will create a shortlist of potential managers. The move would complete the $33.7 billion fund's move to boost absolute-return strategies to 4% of total assets from 1%, under an asset mix change approved late last year. Funding will come from fixed income. Selection is expected at the board's May 24-25 meeting.
Last week, the fund also allocated $300 million to two new hedge fund-of-funds strategies, $200 million to Mariner Investment Group and $100 million to Lazard Alternatives.
In addition, the fund hired Martingale Asset Management and UBS Global Asset Management to run $200 million each in enhanced alpha strategies. Martingale will run a strategy that goes 130% long and 30% short, while UBS will manage a portfolio going 140% long and 40% short. Funding for the Martingale portfolio will likely come out the fund's domestic large-cap equity managers, while funding for the UBS portfolio could come from other strategies run by UBS, Mr. Burns said. No further details were available.
Fund officials also plan to hire a fixed-income portfolio manager to join the four-member team that internally manages more than $8 billion in domestic bonds. They are replacing Eric Richter, who left the fund Feb. 16 to join OppenheimerFunds as vice president, a new position. The application can be found at www.apfc.org. Completed applications are due by March 20.