CalSTRS invested $232.7 million in a hedge fund strategy run by QMS Capital Management as part of its risk-mitigation portfolio and committed $9.9 million to SSG Secured Lending Opportunities II, a fund run by SSG Capital Management as part of its innovative strategies portfolio, according to an investment activity report on the pension fund's website.
The hedge fund strategy is part of the $219.6 billion California State Teachers' Retirement System's risk-mitigation portfolio, which officials expect to reach around $20 billion by early next year. The portfolio includes global macro and trend-following hedge fund strategies and long-duration Treasuries. The portfolio is being built as a hedge to mitigate the effects of an equity downturn.
The SSG fund is a direct lending fund and is part of CalSTRS' $413 million innovation portfolio. The portfolio is used to test investment strategies for CalSTRS that can be expanded on a larger basis for the pension system.
Both strategies were funded as of June 30 by the West Sacramento-based fund, the investment activity report said.