Houston Police Officers’ Pension System terminated hedge fund giant Bridgewater Associates from two underperforming portfolios.
The $7.5 billion pension fund’s board approved terminating its investments in Bridgewater Pure Alpha and Bridgewater Major Markets Fund at its Jan. 11 meeting, according to recently obtained meeting minutes.
The minutes did not disclose the reason for the termination, but the pension fund’s most recent comprehensive financial annual report showed the pension fund’s $480 million hedge fund portfolio posted a net loss of about 3.1% for the fiscal year ended June 30.
The report cited “the allocation to the Bridgewater global macro hedge funds” as the primary driver of underperformance for the period. As of June 30, the pension fund had $120 million invested in the two Bridgewater strategies.
As of Feb. 29, the pension fund’s actual allocation to alternative investments was 43.4%; the target is 45.8%.
A Bridgewater spokesperson could not be immediately reached for comment.
