CalSTRS hired Lyxor Asset Management as consultant for the $148.2 billion plan's new $200 million global macro allocation, its first investment in hedge funds, confirmed Ricardo Duran, a fund spokesman, in an e-mail.
The California State Teachers' Retirement System, West Sacramento, initiated a search for a consultant early last year to assist staff of the fund's innovation and risk unit in setting up the global macro portfolio.
The global macro portfolio is the first strategy to be implemented by the innovation and risk unit, which was approved by system's board in March 2009 to research and test innovative investments.
As part of a three-year trial, Lyxor will work with CalSTRS' investment staff to develop investment policies; set the structure of the global macro portfolio; devise a manager search strategy; and provide monitoring and report services, according to a news release from CalSTRS and Lyxor.
Lyxor and CalSTRS' staff will select three to six hedge fund managers for the program, which will be assessed before the three-year anniversary of the strategy to decide whether to expand, maintain or end the program, the release noted.
