The Hertfordshire County Council pension fund is making its first dive into the hedge fund space.
Bloomberg reported that the pension fund, which manages money for the employees of a commuter belt near London, has made a $442 million investment in Switzerland-based fund of hedge funds firm LGT Capital Partners.
David Lloyd, chairman of the pension’s investment subcommittee, told Bloomberg that the “move is mainly for diversification” in order to boost returns.
The allocation was made possible by moving the pension’s money out of equities.
Hertfordshire County Council manages approximately $3.9 billion for employees.