Illinois Student Assistance Commission, Springfield, is redeeming its approximately $30 million investment in Balestra Spectrum Partners on behalf of the $1.1 billion College Illinois Trust Fund, the state’s prepaid tuition program, said Kent Custer, chief investment officer.
Balestra Spectrum Partners is a global macro hedge fund of funds managed by Balestra Capital.
The reason for the redemption was organizational concerns, not performance, Mr. Custer said.
The assets probably will be reallocated to existing hedge fund-of-funds managers Neuberger Berman and Pinnacle Asset Management, subject to negotiation of terms and final approval by the full commission, Mr. Custer said.
About $24 million will be reallocated to the Neuberger Berman Diversified Arbitrage Fund and $7 million to the Pinnacle Natural Resources Fund. Currently, each manages about $30 million for the commission.