14/09/2011 Author: Kirstie Brewer

Connecticut boosts FoHFs and adds ArchLight fund

The $25.1bn Connecticut Retirement Plans and Trust Funds (CRPTF), which consists of six state pension and eight state trust funds, has plans to allocate $65m to ArchLight Energy Partners Fund V and has boosted allocations to its existing fund of hedge funds (FoHF) mandates, HFMWeek can exclusively reveal.

Denise Nappier, treasurer of CRPTF presented the ArchLight fund to the Investment Advisory Council (IAC) for consideration on 10 August and took the investment decision upon, “reviewing the feedback from the IAC, the input and analysis of the due diligence performed by the interim chief investment officer, and the independent consultant”, Jonathan Harris, deputy treasurer of CRPTF told HFMWeek.   

“The fund is an opportunity to provide the portfolio with a low correlation to equities and fixed income investments, affording a long-term anti-inflation strategy that also generates current income and potential for capital appreciation,” Harris said.

“It would also be the first Alternative Investment Fund [AIF] allocation to the real assets component of the AIF, but as with all investment decisions, the commitment is contingent upon successful contract negotiations” he added. The news comes at a time of high investment activity for CRPTF, with Permal Asset Management and Prisma Capital Management, which were allocated $100m in February, both receiving a further $50m boost in August.     

CRPTF made its first foray into the hedge fund space in 2010, when it announced an initial allocation of between $400m-$600m to absolute return strategies through mandates to FoHFs.

To date, CRPTF has invested $500m across four managers: Permal Asset Management ($150m), Prisma Capital Management ($150m), Rock Creek Connecticut ($100m) and K2 Advisors ($100m).