New Jersey Division of Investment, which handles investments for the $76.5 billion New Jersey Pension Fund, Trenton, agreed to cut its target allocation to hedge funds in half, spokesman William Skaggs confirmed in an email.
At a meeting Wednesday of the State Investment Council, which governs investment policies for the division, a unit of the state Treasury Department, the hedge fund target was reduced to 3% from 6%, or about $2 billion.
The new target is largely part of the overall reduction in its risk management strategies, Mr. Skaggs said. The new asset allocation will begin to be implemented in October. The new target allocation is 59% global growth; 18% income; 13% defensive strategies, which includes the hedge fund target; and 10% real return.