Mass. State Fund Adjusts Hedge Fund Investments

Summary


BOSTON (Reuters) - Fresh from suffering its biggest-ever losses, Massachusetts' state pension fund will adjust its hedge fund investments by eliminating a technique that used a lot of leverage and cost the fund dearly in 2008.

Trustees for the nearly $40 billion fund voted on Wednesday [Aug. 5] to scrap a 6% allocation to the so-called portable alpha investment strategy, a technique used by many pension funds to try and outperform the markets.

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Mass. State Fund Adjusts Hedge Fund Investments

They also agreed to reduce the overall investment to absolute return strategies, including hedge funds, to 8% from 11%, sugge...

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