University of Kentucky, Lexington, invested $80.8 million total in five hedge funds on behalf of its roughly $1.2 billion endowment, said Todd Shupp, chief investment officer, in an email.
The investments and funds are:
- $12 million in Graham Capital Management’s Tactical Trend Capped Beta (Equities);
- $15 million in Fir Tree Capital Opportunity Fund; managed by Fir Tree Partners;
- $15 million in Rimrock Structured Product Fund, managed by Rimrock Capital Management;
- $19 million in Governors Lane Offshore Fund; and
- $19.8 million AQR DELTA XN Offshore Fund, managed by AQR Capital Management.
The Rimrock investment will fall under the endowment’s public credit portfolio, which has a 5% target. The other investments will fall under the diversifying strategies portfolio, which has a 20% target.
Additionally, investment staff fully redeemed its roughly $44 million investment in a Berens Capital Management hedge fund of funds and roughly $61 million across three Wellington Management hedge funds — Hazelbrook Partners, Hawkes Bay Partners and Wolf Creek Partners. The redemptions were made in light of the endowment’s new hedged equity target, which was reduced to 5% from 14% in December.
Redeemed assets were transferred to the new hedge fund managers or reallocated to the endowment’s real assets portfolio.
