Bayerische Versorgungskammer, Munich, will increase its hedge fund exposure to €1 billion ($1.2 billion) from €150 million, according to a source working closely with the €38 billion pension fund.
The additional investments will be made over the next year and funded with cash flows. BVK, with €38 billion in total assets, is expected to hire additional fund-of-funds managers as soon as summer. The pension fund, which is Germany's largest, began investing in hedge funds in 2005.
Alpha Portfolio Advisors has been advising BVK on its hedge fund investments.