Montana Board of Investments, Helena, is considering making its first hedge fund-of-funds investments, confirmed Carroll South, executive director of the board. The board, which oversees about $13 billion, including $8 billion in pension assets, heard educational presentations from BlackRock and Grosvenor Capital Management at its Feb. 13 meeting. Although some board members said they support a possible move into hedge funds of funds, the consensus was “to proceed with caution (and) continue assessing (the asset class),” Terry Moore, board chairman, said in the minutes. “Investing is not a priority today; rather the board is giving staff the yellow light to move forward and put energy alongside (consultant) R.V. Kuhns to … understand both the pitfalls as well as the possible opportunities.” Mr. South said R.V. Kuhns will invite representatives from the $240.6 billion California Public Employees’ Retirement System and $166.5 billion California State Teachers’ Retirement System, both in Sacramento, to discuss hedge fund-of-funds investments with Montana board members.
Separately, the board committed $20 million to Oak Hill Capital Partners III, a middle-market buyout private equity fund, Mr. South said. The board committed $25 million to Oak Hill Capital Partners II in 2005, according to the board’s website. Buyout funds represent 48.2% of the $1.23 billion the board has committed to private equity; the remaining commitments are 19.5% venture capital, 13.9% special situations, 10.7% distressed, 4.7% co-investments and 3% mezzanine.
