Tulare County Employees’ Retirement Association, Visalia, Calif., is exploring ways to bring its hedge fund allocation closer to its 5% target, said David Kehler, retirement administrator.
The $1.3 billion pension fund is considering whether to increase its allocation to existing manager Aetos Capital, hire a new manager or “go in a slightly different direction with risk parity,” Mr. Kehler said. A final decision could be made at the start of 2015. No firm decisions have been reached at this point, he added.
Funding would come from rebalancing.
Approximately $28.3 million, or 2.2% of the pension fund, is already invested in the Aetos Capital Multi-Strategy Arbitrage Fund, a hedge fund-of-funds strategy.
Also, the pension fund is still in the process of redeeming its investment in Union Bancaire Privée’s Selectinvest Arbitrage Relative Value Fund. The pension fund decided to begin the redemption process in 2009 after it learned that one of the underlying funds was a Bernard Madoff feeder fund, Mr. Kehler said. Approximately $1 million is left with the fund.
