Texas Teacher Retirement System in the third quarter invested a total of $1 billion in nine hedge funds and $749 million in long-only equity strategies; it also committed a total of $790 million to five real asset strategies and an aggregate $179 million to private equity strategies.
The $119.7 billion Austin-based fund also redeemed a total of $203 million from hedge funds and terminated investments totaling $455 million in two hedge funds during the three months ended Sept. 30. Withdrawals from long-only equity strategies during the same period totaled $1.7 billion, and one manager was terminated from management of a $315 million strategy.
Information about the Texas Teacher fund came from a transaction report provided to Pensions & Investments.
Hedge fund investments were: $200 million each allocated to Peak6 Achievement Fund, Theleme Fund and Investcorp Waterloo Macro Funds; Black Diamond Relative Value Fund, $130 million; Fir Tree Capital Opportunity Fund, $107 million; Winton Futures Fund, $75 million; $50 million each to PFM Diversified Offshore Fund and ACI Multi Strategy Market Neutral Fund, managed by Algert Coldiron Investors; and $25 million to Horizon Portfolio.
Hedge fund withdrawals were $175 million from AQR Delta Offshore Fund and $25 million from Marathon Credit Dislocation Fund. Hedge fund terminations were $258 million from O'Connor Global Fundamental Fund and $197 million from Henderson Asia Fund.
TRS hired eight managers for long-only global, international and emerging markets equity strategies: Parvus Asset Management, $170 million; Dimensional Fund Advisors, $124 million; D.E. Shaw, $100 million; J.P. Morgan Asset Management, $87 million; Lazard Asset Management, $74 million; Morgan Stanley Investment Management, $70 million; Rock Creek, $67 million; and Eaton Vance, $57 million.
A total of $1.7 billion was withdrawn from 15 long-only equity managers' strategies in the quarter ended Sept. 30, the largest of which were from Knight Vinke Institutional Partners, $241 million; DePrince Race & Zollo Large-Cap Value, $182 million; and Westwood Large-Cap Value, $163 million.
AQR was terminated for a $315 million investment in its small-cap equity strategy, the transaction report said.
In the real assets portfolio, TRS committed $300 million to Lone Star Real Estate Fund III; $200 million each to KKR Energy Income and Growth Fund I and EIG Energy Fund I; and $15 million to Swift Real Estate Partners Fund I.
TRS also committed $75 million to retail real estate co-investments managed by Starwood Capital.
Third-quarter private equity commitments of $15 million each were made to Trive Capital Fund I and NMS Fund II, run by New MainStream Capital. ICV Partners III received a $20 million TRS commitment, the transaction report showed.
TRS also committed $129 million to Apollo Rose, a private equity investment stake in Catalina Holdings, managed by one of the fund's strategic partners, Apollo Global Management.