The A$2 billion (US$1.8 billion) TWU Super, Melbourne, Australia, reinforced its commitment to hedge funds by investing another A$100 million in the strategies and signaling possible additional allocations in 2010.
After redeeming a A$70 million mandate from the hedge fund-of-funds offered by Warakirri Asset Management in late 2008, TWU Super has put A$60 million with U.K. hedge fund-of-funds manager Fauchier Partners and invested A$40 million in GMO's multistrategy trust, an absolute-return fund, when the manager opened the fund to new investors six months ago.
The mandates lift TWU Super's hedge fund investments to 5% of its total portfolio and might be followed by further investments next year, “depending on how markets, and hedge fund and growth assets, go,” said Andrew Killen, TWU Super chief investment officer. He said any further investments in hedge funds were likely to be made through hedge funds of funds.
JANA Investment Advisers is the fund's consultant.
Simon Mumme is a reporter with Investment & Technology in Sydney.