Illinois State Universities Retirement System, Champaign, is considering investing in alpha-tilt and hedge-fund-like strategies, said Daniel L. Allen, CIO. Staff is looking at relative-value, event-driven, arbitrage and other strategies that are similar to hedge funds, Mr. Allen said. They are examining using marketable and non-marketable equity and fixed-income strategies, Mr. Allen said. Staff is likely to make a recommendation to the board in September, he added. "We will be floating a series of potential strategies at the board to see if they are interested," Mr. Allen said.
The allocation could be 2% or 3% of the fund, although "we aren't at that stage yet." The $14.4 billion fund has no allocation to hedge funds and has no plans to add one at this time, he said.
Ennis Knupp is assisting in the study.