Calpers Likely To Boost Hedge Funds Allocations

The US$228 billion California Public Employeesʼ Retirement System is likely to increase or maintain hedge fund investments next year, according to the fundʼs CIO Joseph Dear in an interview withBloomberg in Hong Kong.

Calpers currently has around $5.2 billion in hedge funds, equivalent to 2 percent of its total AUM. 60 percent of its hedge fund investments are made directly by allocating to larger managers, while 40 percent is made via fund of funds, according toDear.

Recommendations regarding the benchmarks, objectives, capital source and strategies for its hedge fund investments are to be made in spring 2012. The pension fund has a current target of 7.75 percent returns on its total portfolio.