(updated with correction)
SkyBridge Capital jump-started its credibility in the institutional investment community with the hiring of Peter Carey and Robert Mazurek, both senior investment officers overseeing investment of the $4 billion hedge fund portfolio of the $124.8 billion New York State Common Retirement Fund, Albany.
SkyBridge Capital, based in New York, hired the duo to staff up a new strategy, SkyBridge Direct, which tailors customized direct investment hedge fund portfolios for institutional investors.
Mr. Carey is managing director and head of the firm's institutional hedge fund business and Mr. Mazurek is director.
Mr. Carey was director of absolute-return strategies at the office of the New York state comptroller, division of investment and cash management. He was the architect behind the transformation of the New York state system's hedge fund portfolio from all funds of funds to an 85%/15% split between direct investment and funds of funds.
Mr. Mazurek was Mr. Carey's chief lieutenant in the hedge fund group while at the New York fund, holding the title of investment officer and portfolio manager with a focus on portfolio strategy, manager selection and risk monitoring.
Dennis Tompkins, spokesman for state Comptroller Thomas P. DiNapoli, said New York fund officials are assessing their options with regard to replacing the two.
The position at SkyBridge represents a return to the money management industry for Mr. Carey. He was a vice president in the fixed-income department at Bear Stearns Asset Management before becoming a public employee. A graduate of the U.S. Military Academy at West Point, Mr. Carey served as an infantry officer before beginning his money management career.
“I'm excited to be returning to the private sector,” Mr. Carey said in an interview, noting that he is eager to apply the skills of hedge fund portfolio construction honed while remaking the New York fund to other institutional investors.
“There's a need for a holistic approach to creating direct-invested hedge fund portfolios. It's not something that's widely available in the industry,” Mr. Carey said.
“Hedge funds of funds tend to be a single line item in the portfolio, but they actually represent a lot of managers. You really don't need 100 hedge fund managers in your portfolios. You can create a solid portfolio with fewer managers with whom you have a real relationship, more of a partnership, where issues like fees, transparency and liquidity can be better aligned with the investor,” he said.
At SkyBridge, Mr. Carey will work with Raymond Nolte, managing partner and chief investment officer. Mr. Nolte and his investment team joined SkyBridge when the firm acquired Citi Alternative Investments earlier this year.
At the time of the acquisition, CAI managed $4.2 billion in hedge funds of funds, hedge fund seeding vehicles and pension fund advisory services. SkyBridge Capital manages a total of $7 billion.