Private Advisors is closing its commingled low-volatility hedge fund of funds with roughly $1 billion in assets and returning money to investors, said Jacqueline Meere, a spokeswoman at parent company New York Life Investment Management.
Also, Tim Berry, partner and head of hedge fund investments, has left Private Advisors and will not be replaced, Ms. Meere said an e-mail. After 15 years in hedge funds of funds, Mr. Berry said he will be taking time off. He did not provide further information about his departure.
“Performance in recent years across value-oriented hedge funds generally, and the low-volatility strategy, led to an increase in redemptions,” Ms. Meere wrote. “As a result of remaining client concentration, Private Advisors decided to proactively wind down the commingled funds.”
Ms. Meere said the firm “maintains high conviction” in the (low-volatility strategy) and will continue managing diversified low-volatility hedge fund programs through custom accounts.”
In February, Oklahoma Firefighters Pension & Retirement System, Oklahoma City, voted to eliminate its 3% low-volatility hedge fund allocation, managed solely by Private Advisors. Troy Brown, an executive director and senior consultant at The Bogdahn Group and investment consultant to the $2.1 billion pension fund, preBogdahn Group and investment consultant to the $2.1 billion pension fund, previously told Pensions & Investments that the elimination decision was based on “the diversification moves the system (had) made over the last several years, growing liquidity needs and performance concerns.”
Private Advisors managed more than $5.6 billion in hedge funds of funds and private equity funds of funds as of March 31.
Private Advisors' hedged equity team and private equity business have not changed.