Merced County (Calif.) Employees' Retirement Association approved a new direct investment in a hedge fund and a new commitment to an oil and gas fund totaling up to $23 million.
The $1.1 billion pension fund's board approved an investment of up to $15 million in Hudson Bay Fund, a multistrategy hedge fund managed by Hudson Bay Capital Management, and a commitment of up to $8 million to EnCap Energy Capital Fund XII, oil and gas fund managed by EnCap Investments, at its March 23 meeting, said Kristen Santos, retirement plan administrator, in an email.
The Hudson Bay investment is the first to the manager for the pension fund, which previously committed $5 million to EnCap Energy Capital Fund XI in 2017.
As of Jan. 31, the pension fund's actual allocations to hedge funds and real assets were 9.9% and 5.1%, respectively; their respective targets are 10% and 5%.
