Hartford HealthCare, Hartford, Conn., recently launched a $350 million program to make direct investments in hedge funds for its $2.35 billion pension and endowment system.
According to David Holmgren, chief investment officer of Hartford HealthCare, the plan is to hire 14 managers over the next two years — roughly two managers per quarter — to manage $25 million each. HHC is targeting this direct program to account for between 10% and 12% of the combined pension fund and endowment.
Funding comes in part from terminating a $100 million hedge fund-of-funds strategy and potentially redeeming assets from other hedge fund-of-funds managers, Mr. Holmgren said. He declined to name the managers.
Hedge fund managers interested in participating in the program can contact Samantha Levenstein, portfolio adviser at HHC’s consultant Aksia, via mail at 599 Lexington Ave., 46th Floor, New York, NY 10022, or via phone at 212-710-5710.
HHC’s investment council recently made its first two $25 million direct investments in hedge funds in event-driven strategies managed by Venor Capital Management and Standard General. HHC is looking to make a third hire in April or May.
HHC expects to save $1.4 million in manager fees by switching to direct investments from hedge funds of funds, provide increased governance and offer “more strategic ballast” to its capital appreciation assets, Mr. Holmgren said in an e-mail.
