The New Mexico State Investment Council, Santa Fe, hired three hedge fund-of-funds managers to run a total of $200 million in strategies that will provide downside protection in case equity markets fall, said Adam Levine, deputy state investment officer. The $13.5 billion endowment fund invested $100 million in Hunt Financial Ventures, and $50 million each in EIM Group and K2 Advisors' alternative strategies fund, a low-volatility fund of funds making bets in a host of esoteric markets including movie rights to weather derivatives and carbon dioxide emission credits. All three managers already run market-neutral strategies for the fund.
The fund's overall absolute-return allocation now totals $1.3 billion.
New England Pension Consultants assisted.