The £995 million ($1.56 billion) London Borough of Camden Pension Fund will double its hedge fund allocation to 10% of total assets, said Peter Taylor, pension fund accountant.
Funding will likely come from reducing equities, which accounts for about 73% of the total portfolio. According to documents published on the fund's website, the move is “to reduce the pension fund's dependence on highly volatile equity markets through greater asset allocation.”
Earlier this year, fund executives appointed BlueCrest Capital Management to manage a £50 million hedge fund of funds strategy — the fund's first hedge fund investment.
Mr. Taylor said fund executives have not decided when an RFP for additional hedge fund managers will be launched. Aon Hewitt is advising.