New Jersey State Investment Council on March 18 approved a recommendation by staff of the state’s Division of Investment to invest $100 million each in two new hedge funds managed by Brevan Howard Asset Management and Pershing Square Capital Management, confirmed Andrew Pratt, a spokesman for the Trenton-based council and investment division, which oversee the $67.3 billion state employees’ pension fund.
Additional investments of $250 million each were approved for existing hedge funds of funds managed by Goldman Sachs Asset Management and Rock Creek Group. The new allocations bring Goldman Sachs’ total managed in hedge fund-of-fund strategies for the system to $597 million and Rock Creek to $494 million.
The pension fund will have $3.6 billion in hedge fund investments after the new commitments are funded, according to meeting materials.
Council members also approved commodity derivative investments totaling $500 million. Cargill was awarded $150 million to manage in a commodity-linked note, according to a March 12 memo to the investment council from Ray A. Joseph, acting director. The remaining $350 million will be invested in one or more new CLNs. Mr. Joseph’s memo said staff will seek issuers with credentials including a minimum A credit rating from S&P and Moody’s and a spot within the top 10 ranked dealers in commodity derivatives.
The source of funding for the hires was not immediately available.
The fund’s fiscal year-to-date return as of Feb. 28 was 14.09%, compared with 13.55% for the internal customized benchmark, according to an investment report presented by Mr. Joseph to the board.