06/04/2011 Author: Shannon Hawthorne

Illinois College boosts hedge fund allocations

The investment advisory panel for the $1.13bn College Illinois 529 Prepaid Tuition Programme has boosted its allocation to hedge funds, HFMWeek has learned.

The panel approved a new $50m investment into fund of hedge funds (FoHF) firm Clipper Partners, a multi-strategy, multi-manager endowment-style investment fund, in February; as well as allocating an additional $25m to existing hedge fund manager Reynoso Asset Management, specifically, the Reynoso Options Arbitrage Fund, a managed futures fund.

The investment trust, which began allocating to the sector at the beginning of last year, previously allocated 13.9% of its investment portfolio to four hedge funds:  Reynoso, Neuberger Berman’s diversified arbitrage fund, Pinnacle Asset Management’s natural resources fund, and global macro firm Balestra Capital.

As of July 2010, the trust’s investment portfolio was down 1.8% since inception.

The College Illinois Prepaid Tuition Programme’s investments are currently managed by the Illinois Student Assistance Commission (ISAC), an Illinois state agency.The investment advisory panel for the $1.13bn College Illinois 529 Prepaid Tuition Programme has boosted its allocation to hedge funds, HFMWeek has learned.

The panel approved a new $50m investment into fund of hedge funds (FoHF) firm Clipper Partners, a multi-strategy, multi-manager endowment-style investment fund, in February; as well as allocating an additional $25m to existing hedge fund manager Reynoso Asset Management, specifically, the Reynoso Options Arbitrage Fund, a managed futures fund.

The investment trust, which began allocating to the sector at the beginning of last year, previously allocated 13.9% of its investment portfolio to four hedge funds:  Reynoso, Neuberger Berman’s diversified arbitrage fund, Pinnacle Asset Management’s natural resources fund, and global macro firm Balestra Capital.

As of July 2010, the trust’s investment portfolio was down 1.8% since inception.

The College Illinois Prepaid Tuition Programme’s investments are currently managed by the Illinois Student Assistance Commission (ISAC), an Illinois state agency.