Connecticut earmarks $90 million, considers consolidating 2 hedge funds of funds

Connecticut Retirement Plans & Trust Funds, Hartford, committed to one fund, increased its commitment to another and is considering consolidating two portfolios, said Denise L. Nappier, state treasurer and principal fiduciary of the $34 billion pension fund.

At the investment advisory council meeting Wednesday, Ms. Nappier announced a commitment of up to $65 million to Basis Investment Group Fund I, a real estate fund.

The commitment is contingent upon successful negotiation of the partnership documents.

The treasurer also announced an increased commitment of up to $25 million to Leeds Equity Partners VI, a lower-middle-market buyout fund. The pension fund previously committed $50 million to the fund in late 2016.

Also at the meeting, Ms. Nappier said she is considering consolidating the holdings of two hedge funds-of-funds managers within the $1 billion Connecticut Horizon Fund portfolio. The plan would be to transition the assets from Thomas Welles Fund II, managed by Morgan Stanley (MS) Alternative Investment Partners, to the assets in Thomas Welles Fund I, managed by Appomattox Advisory. She believes this would create a more efficient portfolio and improve performance. Each Thomas Welles Fund has about $87 million in assets and the time frame for consolidation would be over the next three months.

The Connecticut Horizon Fund provides opportunities for Connecticut-based and emerging investment management firms, as well as investment firms owned by women and minorities.

The pension fund had a 9% allocation to private equity and a 6.9% allocation to real estate as of Sept. 30, according to Pensions & Investments data.