Alternative Investments Asset Class

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FBI Makes Subprime Arrests

Former Bear Stearns hedge fund managers, Ralph Cioffi and Matthew Tannin were arrested and taken to a Brooklyn Federal court today. The charges are the first to come out of federal investigations of possible fraud on the part of banks and mortgage companies whose investments in subprime loans led to nearly $400 billion in losses for Wall Street. Allegedly, Cioffi and Tannin discussed the state of the hedge funds and acknowledged that they were in…

City of Knoxville Creates New Allocations

The $540 million City of Knoxville Pension Board will meet with consultant Dan Holmes of Summit Strategies next month to discuss ways to implement recently approved allocations, said Mike Cherry, executive director at the fund. Following the results of an asset/liability study, the plan decided to carve out allocations of 11% to portable alpha, 5.5% each to emerging markets equity and international small-cap equity and 5% each to private energy and private equity, Cherry said. Within…

Iowa Regents Examines Assets

The $1.8 billion Board of Regents for the State of Iowa is currently undergoing a review of its asset allocation, said Chief Business Officer Patrice Sayre. 'This is a formal review with our financial investment advisor, Wilshire Associates,' she said, adding that plan changes will be brought to the August Board of Regents meeting for discussion and anticipated approval. According to the minutes for the Regents April meeting, the board will consider increasing its investments in real…

Pa. County Plan Doubles Up on Hedge Funds

The Susquehanna County Retirement Fund has increased its allocation to hedge fund investments to 10%, up from the previous 5% the plan had allotted to the asset class, said Cathy Benedict, county treasurer and retirement board member. Benedict said that the board agreed to the doubling of the hedge fund allocation after it was recommended by the plan's consultant, The Seneca Group. Seneca will present hedge fund recommendations to the board during its next quarterly report.…

Illinois TRS Expands Emerging Manager Program

The Teachers' Retirement System of the State of Illinois (TRS) will be expanding its $500 million emerging manager program, said Eva Goltermann, spokeswoman for the $38.7 billion plan. The program, which had earlier encompassed only the public market asset classes, will now also include investments in private equity, real estate and absolute return. Goltermann noted that up to 10% of the program could go into private equity investments. 'TRS staff will take the lead in identifying…

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Jersey State Adds To Alternatives

The New Jersey State Investment Council (NJSIC) has added four new investments to its alternative portfolio, confirmed Tom Bell, spokesman with the state's department of the treasury. The council approved a $75 million hedge fund investment with Ironbound Capital Management, as well as a $100 million private equity investment in Fairview's Capstone II NJDOI Emerging Manager Separate Account.

Abbott Picked By Baltimore Employee Plan

Private equity manager Abbott Capital Management has been hired by the $1.4 billion Baltimore Employees' Retirement System. The firm will receive a $40 million commitment to be invested in the Abbott Capital Private Equity Fund VI. An agenda for a June 18 City of Baltimore board of estimates meeting states that the plan has previously invested in two funds with the manager.

Ann Arbor to Go the Alternative Route

After much back and forth on the issue, the $413 million Ann Arbor Employees' Retirement System will be allocating up to 10% of its total portfolio to alternative investments. According to recently released minutes of its May meeting, the Michigan plan approved the measure following years of education from its consultant Gray and Company. Just last May, Ann Arbor considered launching a foray into alternative investments (See IMW, 5/28/07).

New Mexico ERB Hires for Alternatives

New investments in infrastructure, real estate and private equity recently received the green light at the $9.4 billion New Mexico Educational Retirement Board (NMERB), said Bob Jacksha, CIO at the Sante Fe plan. He noted that the board approved infrastructure investments of $50 million each to Citi Infrastructure Partners and Alinda Infrastructure Fund II, which gets the plan close to its target for the asset class. In real estate, the board also committed $50 million in Prima Mortgage Investment Trust. A $50 million private equity investment in Levine Leichtman Capital Partners IV was also approved.

Arkansas Approves New Investments

The Arkansas Teacher Retirement System (ATRS) made new investments in private equity and real estate investments at a meeting earlier this month. According to published reports, the board approved a $50 million private equity commitment in Vista Equity Partners' Equity III fund, which invests in software firms.

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