Bloomberg – The Massachusetts state pension fund, which oversees $49.5 billion of assets, will begin bypassing middlemen by directly investing as much as $500 million in hedge funds.
The board that oversees the fund, known as the Massachusetts Pensions Reserves Investment Trust, voted today to hire Cliffwater LLC to advise it as it shifts money out of the $3.8 billion it has placed in hedge fund of funds, which charge an additional management fee. Officials are hoping to lower the cost of investing in the alternative-asset class and improve performance, according to Steven Grossman, the state treasurer who oversees the board.
