11/08/2010 Author: Kapila Gohel

Maryland set to fulfil hedge fund allocation

The $32bn State Retirement and Pension System of Maryland is close to hiring four senior investment analysts as it continues towards its 7% hedge fund allocation target.

“We are considering some highly qualified candidates focusing on hedge funds, fixed income, private equity and real return for positions in the investment team,” said Mike Ruetz, chief risk officer at Maryland, speaking about the search that was started in April.

The pension system has $1.44bn (4.5%) invested in hedge funds at the moment, but is aiming to reach 7%, according to Ruetz. Maryland’s long-term absolute return target, which was approved in September 2008, is 3% higher than that target, at 10%.

“We still have 2.5% ($800m) to invest at the moment and we are reviewing and evaluating some approaches and strategies,” said Ruetz, confirming that the system has “not excluded any” strategies in the evaluation process.

Maryland invests in both direct hedge fund managers and funds of hedge funds (FoHFs), and includes global tactical asset allocation, distressed debt managers, macro managers, convertible arbitrage managers, multi-strategy hedge funds, merger arbitrage managers, long/short market-neutral managers, fixed income arbitrage managers and broad-based FoHFs.