WEST PALM BEACH, FL (www.hedgeco.net) – The Los Angeles Fire & Police Pension System has announced its plans to invest with hedge fund managers during the later part of 2005. According to thereport, the fund is organizing a search for a manager to handle the fund�s $150 million in REIT�s. The fund plans to invest about 10 percent of its assets in Real Estate, and additional 10 percentwill be devoted to alternative investments according to the report.
The CIO of the Pension fund, Thomas Lopez said the fund does not want to be left out in the cold, because many other pension funds have already invested assets with hedge fund managers according to him. Lopez did not say exactly what percentage of assets will be dedicated to hedge fund managers, but he believes the level of initial investment will be closer to one percent of the total of the pension fund�s assets.
The fund has selected Pension Consulting Alliance to assist it in the manager selection process. The L.A. Fire and Police Pension system will be investing in fund of funds vehicle according to Lopez, such strategy will enable the fund to achieve more diversified portfolio. Lopez was unclear as to whether the L.A Pension Fund will be using the services of Pension Consulting Alliance or Consulting Services Group for due process monitoring.
Pension funds and Endowments have become one of the leading sources of new hedge fund management assets. Sluggish equity and bond market returns have pushed institutional investors to seek alternative sources for investment returns. It is believed that institutional money will soon account for about fifty percent of new assets coming to hedge fund mangers.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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