Louisiana State Police Retirement System, Baton Rouge, selected GAM USA and UBP Asset Management to run $10 million each in its first hedge fund allocation, confirmed Irwin Felps, executive director of the $440 million system. Funding will come from fixed income, but Mr. Felps declined to say which managers will see portfolios reduced. He added that the change was a strategic move and not related to poor performance by bond managers. “Capital market projections show that there is no way we could meet our actuarial rate of return if we just did traditional investing.” Mr. Felps said. UBS Prime Asset Consulting Group assisted in an invitation-only search.
The fund may also invest in timber in the next few months, Mr. Felps added.
