The pension investment committee of the Vermont State Retirement System, Montpelier, approved a new 5% allocation to hedge funds and hired its first hedge funds-of-funds managers at a meeting this week.
Steven Rauh, chairman of the committee, confirmed in an e-mail response to questions that the $3 billion fund invested $60 million each in the multistrategy Grosvenor Institutional Partners, managed by Grosvenor Capital Management, and Permal Fixed Income Holdings Institutional, managed by Permal Investment Management Services. About $30 million was invested in GAM USA's multistrategy GAM U.S. Institutional Diversity. The hires are pending contraction negotiations.
The new allocation was created at the Tuesday meeting by reducing large-cap equities by three percentage points to 12% and core bonds by two percentage points to 18%, Mr. Rauh said in his e-mail.
Because this is a first investment, “the committee's aim was to be broadly diversified among the principal hedge fund strategies,” Mr. Rauh wrote in his e-mail.
NEPC assisted in manager selection.