SAN FRANCISCO San Francisco City & County Employees Retirement System trustees approved a 2008 investment plan for their $1.6 billion private equity portfolio. The $16.9 billion pension fund will invest $200 million to $300 million with about 10 new or emerging private equity managers and about $300 million in new investment opportunities with existing managers. It will also look for special situations, late and multistage venture capital and middle-market buyout funds because it is underweight in those sectors. Staff will also consider participating in co-investment funds, a new strategy for the fund.
The fund will invest $525 million a year for the next five years in private equity as part of a plan trustees approved in November.
CEO, CIO at hedge funds of funds take top pay
NEW YORK CEO and CIO were the best-compensated positions at hedge funds of funds in 2007, according to an Infovest21 survey. CEOs will bring home an average of $2.8 million in 2007, compared with $1.6 million for CIOs, according to a survey of 30 hedge fund-of-funds companies.
Directors of research and directors of sales and marketing were next, averaging between $900,000 and $999,999 in 2007. Portfolio managers and COOs will earn between $600,000 and $699,999 in average compensation this year, while CFOs and chief risk officers will bring home between $400,000 and $499,999. The survey was conducted in November and December.
. . . but size of firm matters
NEW YORK Size matters when it comes to compensation of hedge fund COOs and CFOs, according to a new Rothstein Kass survey. The October survey of more than 500 CFOs of hedge funds found that for COOs, the larger the hedge fund, the bigger the compensation. COOs at hedge funds managing more than $3 billion earned total compensation averaging $1.4 million per year, compared with an average of $1.2 million at funds managing between $1 billion and $2.99 billion, and $1 million for funds managing between $100 million and $999 million.
Hedge fund CFOs surveyed reported the opposite situation regarding their own compensation. CFOs in the smallest tier of hedge funds averaged total take-home packages of $1.8 million, compared to $1.6 million at mid-tier firms and $1.3 million at the largest firms.
Hedge fund indexes down in November
NEW YORK Hedge fund and fund-of-funds indexes were negative for November, but still performed significantly better than long-only indexes.
The Eurekahedge Hedge Fund index led the pack with a -1.23% return, followed by the HFRI Fund Weighted Composite index, -1.4%; Hennessee Hedge Fund index, -1.58%; and Barclay Hedge Fund index, -1.79%.
The aggregate average return of the hedge funds in HedgeFund.nets database was -0.89% for the month.
Eurekahedge also took top honors for fund-of-funds indexes, returning -1.49% in November, followed by HFRI Fund of Funds Composite index, -1.62%; and Barclay Fund of Funds index, -1.63%.
By contrast, the Lehman Brothers Aggregate Bond index was up 1.8% for November, while the S&P 500 returned -4.4% and the MSCI World index, -4.57%.
Year-to-date hedge fund returns as of Nov. 30 were positive; Eurekahedge Hedge Fund index, 13.46%; Hennessee Hedge Fund index, 11.94%; HFRI Fund Weighted Composite index, 10.24%; and the Barclay Hedge Fund index, 10.02%.
Hedge funds of funds also enjoyed positive returns for the period, led by HFRI Fund of Funds Composite index, 9.68%; Eurekahedge Fund of Funds index, 9.51%; and Barclay Fund of Funds index, 8.48%.
The average return year-to-date for the aggregate hedge funds in the HedgeFund.net database was 10.71%. Year-to-date returns of major long-only indexes were 4.45% for the S&P 500; 10.96% for the MSCI World index; and -6.66% for the Lehman Aggregate.
AMG takes stake in BlueMountain Capital
BOSTON Affiliated Managers Group acquired a minority equity interest in BlueMountain Capital Management, a hedge fund manager specializing in credit alternatives. Terms of the deal werent disclosed. BlueMountain has about $4.8 billion under management.
Citi Alternative acquires private equity firm
NEW YORK Citi Alternative Investments will acquire private equity firm Metalmark Capital upon completion of a deal reached Dec. 10, according to statements from both firms. Terms were not disclosed. John P. Havens, president and CEO of Citi Alternative, said the acquisition fills a product gap for CAI by being a developed market private equity investor that has a scalable client platform. Howard Hoffen, Metalmark chairman and CEO, was named managing director and member of the management committee at CAI as part of the deal. He will report to Mr. Havens.
Round Hill deal gives Pru presence in Japan
PARSIPPANY, N.J. Prudential Real Estate Investors acquired Round Hill Capital Partners to give the firm a presence in Japan, said Theresa Miller, Prudential vice president, global communications. Terms were not disclosed. Since 2003, Round Hill has provided asset management services, including investment management and property management, assisting Prudential with 19 investments in Japan worth $1.5 billion.