09/11/2011 Author: Kirstie Brewer

Michigan State plans two new allocations

Michigan State University (MSU), which has a $1.2bn Common Investment Fund, has plans to allocate $18.7m to Indus Capital Partners and $15m to Standard Pacific Capital, as it looks to broaden its exposure to global long/short strategies.   

MSU, which already invests in the Indus Asia Pacific Fund, is now considering investing in the Indus Europe Fund, which would be funded “with proceeds of a withdrawal from the Martin Currie European Hedge Fund”, documents seen by HFMWeek confirm.

Cambridge Associates, investment consultants for MSU, who made the recommendations, also backed the Standard Pacific Global Long/Short Equity Fund, on the grounds that its global mandate and lower net-long exposure would complement the existing long/short managers in MSU’s Common Investment Fund, the documents state.   

MSU has made a number of hedge fund investments this year, most recently in April with Boston-based hedge fund CrossHarbor Capital Partners, and Contrarian Capital Management, which focuses on distressed investing, HFMWeek reported at the time. The $3.3bn Conatus Capital Management was also added to the Common Investment Fund this year.

As of October 2010, the Common Investment Fund targeted an absolute return allocation of 25%, with a maximum of 30%.