04/03/2010 Author: Kapila Gohel

Florida Uni close to direct investing move

The Florida State University (FSU) Foundation has almost entirely moved its hedge fund portfolio to direct investments
The $399m fund was previously split 50/50 between funds of hedge funds (FoHFs) and single managers, but is nearing completion as a direct portfolio, Jerr Ganz, chief financial officer at the FSU Foundation, revealed.

“We continue to make manager changes depending on alterations within the funds, such as transparency issues or funds that were previously closed opening up for new investments,” he said. The Foundation recently approved an investment in a hedge fund that was previously closed to new investors.

Avoiding the double layer of fees encouraged the foundation to make the transition to direct, with transparency issues also playing a key part.

Last month, Ralph Alvarez, associate vice president for budget/planning and financial services told HFMWeek the University will be looking for investments in the secondary market, although the foundation is yet to make those  investments.

FSU has a 20% allocation to marketable alternatives and currently has $83.9m invested. It’s advisor is Cambridge Associates.