N.J. Pension To Make Hedge Fund Foray
Alternative Investment News
March 11, 2004
The New Jersey Division of Investments, the $76 billion pension system for the Garden State, is planning to make its first investments in hedge funds. The plan's general consultant, San Francisco-based Strategic Investment Solutions, is currently conducting an asset-liability study that is scheduled to be wrapped up by summer, said Peter Keliuotis, a senior consultant with SIS. The pension's investment council has expressed an interest in single-manager hedge funds, and the size of the allocation will be determined by the study, he said.
SIS does not have a large hedge fund practice and would seek to outsource manager selection to a discretionary or non-discretionary advisor, Keliuotis said. There could be a split whereby some of the allocation would be overseen by an advisor working with the Division's staff but where specialized mandates for, say, emerging managers could be farmed out to funds of funds, Keliuotis added.
The Division, which has historically managed its assets internally, is also considering real estate and private equity allocations. While SIS has a significant private equity practice, Keliuotis said, a sub-advisor would likely be hired. "SIS was recently hired to conduct a comprehensive review of our Division of Investments and that process is ongoing," said Matt Golden, a spokesman for the New Jersey Department of the Treasury, but declined to comment further.
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