Arizona Public Safety Personnel Retirement System, Phoenix, committed up to $100 million to hedge fund manager BlueCrest Capital Management’s BlueTrend Fund and up to $40 million in FrontPoint Partners SJC Direct Lending Fund, confirmed James Hacking, administrator of the $6 billion system.
Mr. Hacking said the BlueTrend Fund uses quantitative models to trade daily futures across 150 markets in equities, fixed income, foreign exchange, energy, metals, agriculture and soft commodities.
“So in that respect, it’s similar to the global tactical asset allocation (investments) the board has authorized over the last several months, but it’s not the same thing,” he said.
The FrontPoint absolute-return fund invests in loans to middle-market companies having difficulty accessing traditional sources of debt capital, Mr. Hacking said. “It’s difficult for businesses these days to get loans; this fund is helping to fill that space,” he said.
Mr. Hacking said both commitments are subject to due diligence.
He said the board at its Wednesday board meeting postponed discussing a third commitment because of a scheduling error at the system. The potential investment of up to $20 million to Avalon Ventures IX, a seed and early-stage venture capital fund, will be discussed at a special board meeting June 28, Mr. Hacking said.
“I’m confident they will approve the investment,” Mr. Hacking said.