Canada Pension Plan Investment Board is launching an internal hedge fund in its London office.
Financial News reported that the pension board has hired hedge fund management veteran Durek Carrasquillo from London-based Tranberg Capital Management to run the new division. Alain Carrier, head of Europe for CPPIB, said that CPPIB is planning to hire a team of “four to five professionals” that would build a long/short portfolio targeted at Europe, the Middle East and Africa.
The article added that it is unusual for pension funds to start internal hedge funds, as most prefer to allocate money through hedge funds of funds. However, Carrier added that the internal hedge fund launch was prompted by the pension’s belief that “European equities remain very attractive.”
Toronto-based CPPIB, which manages about $175 billion in assets, has offices in London and Hong Kong and last month opened offices in New York and Brazil.