The Voice of Connecticut’s Hedge Fund
& investment Advisor Community
As reported, the California Public Employees Retirement System ("CalPERS") made the decision in September to withdraw their exposure to hedge funds. CalPERS is the country's largest public pension fund, with a portfolio of approximately $300B. Due to its size and the very public nature in which this announcement was made, we have decided to take this opportunity to review the institutional market for hedge funds and convene a symposium to have a rational and thoughtful discussion about the issues raised.
While the decision from CalPERS may start conversation at the boardroom level, it is not our view that CalPERS decision reflects broader institutional investor sentiment. Preqin recently reported that there are more U.S. public pension plans allocating capital to hedge funds than ever before, and they are investing the most they ever have in the asset class.
A few statistics:
• The number of U.S. public pensions invested in hedge funds has risen from 234 in 2010 to 269 in 2014.
• Their average allocation to hedge funds has increased from 7.2% to 8.6% in the same period.
• 34% of hedge fund managers reported an increase in capital coming from public pension funds in H1 2014.
Speaker:: Jason Josephiac, Senior Manager, Senior Investment Analyst, United Technologies
Moderated by:: Kevin Edwards, Senior Investment Director, Hartford HealthCare
Institutional investors continue to be the primary source of new capital allocations to hedge fund managers. Regardless of manager size, almost all are aware that the bulk of these flows are coming from U.S. public pensions, which are most often advised by one or more consulting firms. In looking beyond the U.S. borders, new regulations have just begun to take effect in Europe, which could adversely impact flows from local allocators or managers’ abilities to access them. And, while Asia continues to hold great promise, the talked-about “great rotation” coming off the 2008 hedge fund experience has yet to happen.
On September 10th, we will therefore look to our northern neighbor, Canada. Canadian institutions have a long-developed history of investing in U.S. hedge fund managers and continue to be active allocators in the space, from public and corporate plans, sovereign wealth funds, endowments, foundations and funds-of-funds.
Dave Finstad, Director, Hedge Fund Management at Ontario Municipal Employees Retirement System - OMERS
Stephen Harvey, Partner and Head of Toronto Office at Saguenay Strathmore Capital - SSC
Moderated by:David BurkeManaging Director MKP Capital
New and small hedge fund firms often referred to as "emerging managers" face a conundrum. Empirical data suggests that they outperform larger managers and yet industry flow reports show time and again that the lion's share of inflows (especially from institutional managers) go to the largest funds. Join the CTHFA on May 29th as we explore the challenges unique to emerging managers and try to share pathways to success.
David Harmston Partner and Global Head of Albourne’s Client Group
Terry Purcell Principal Investment Officer - Alternative Investments & Private Equity at Connecticut Retirement Plans & Trust Funds
Moderated by Peter Carey, Principal and Head of Marketing and Business Development at Archview Investment Group
The symposium will discuss the current state of the financial services industry in CT, and explore the questions of whether our fellow "Connecticans" understand the importance and contributions of this industry and if our representatives are doing enough to ensure that CT remains a leading global center or if we are destined to lose market share to cities such as New York, Boston and Miami.
We are very pleased to be joined by two of our most important representatives, State Senators Scott Frantz (Greenwich, New Canaan, Stamford) and Carlo Leone (Stamford, Darien). We look forward to a spirited discussion and a very informative evening.
Honorable L. Scott Frantz, Member, Connecticut State Senate
Honorable Carlo Leone, Member, Connecticut State Senate
Moderated by David Burke, Managing Director MKP Capital
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Connecticut Hedge Fund Association, Inc. PO Box 232, Greenwich CT 06836