Wyoming State Loan and Investment Board, Cheyenne, hired Grosvenor Capital Management to run $300 million in a customized opportunistic credit separate account, said Michael Walden-Newman, chief investment officer, in an e-mail.
The customized hedge fund-of-funds portfolio “will seek to capitalize on evolving opportunities presented by the dislocated credit environment in Europe following the financial crisis and recession,” said a memo provided by Mr. Walden-Newman. It will invest in four hedge funds: 35%, or $105 million, in an international credit fund; 25%, or $75 million, each to a European real estate credit fund and a European structured credit fund; and 15%, or $45 million, to a European opportunistic credit fund.
The names of the underlying funds and the funding source could not be learned by press time.
The board oversees the state’s $11 billion in permanent funds, including the $6 billion Permanent Mineral Trust Fund, $2.8 billion Common School Permanent Land Fund and five other funds. The board also oversees $5.5 billion in state operating funds, which by state law invest in only cash and fixed income.
Investment consultant R.V. Kuhns & Associates assisted.