Employees Retirement System of Texas plans to allocate up to $600 million to hedge funds before the end of its fiscal year on August 31.
Pensions & Investments reported that the $23.2 billion pension fund aims to invest in eight to 12 new hedge fund managers. The pension, which has a 5% or $1.2 billion hedge fund investment target, has already invested $300 million by the end of 2012.
The article also said that ERS’ hedge fund team is finishing “late-phase due diligence” with several undisclosed equity long/short and equity market-neutral managers.
The name of the managers will not be identified until the pension board's meeting on May 21.