Pensions & Investments – Texas Teacher Retirement System, Austin, is in the process of building out a new 5% allocation — $5.5 billion in current dollars — to directional hedge funds to bring the $109 billion fund up to its 9% hedge fund target.
Last year, the state Legislature approved an increase in the $109 billion system’s hedge fund cap to 10% from 5%. The fund is maintaining its existing 4% allocation — about $4.4 billion in current dollars – that is invested in “stable value” or conservatively managed hedge funds, according to an annual review of external public markets investments presented to the TRS board on Sept. 15 by Dale West, senior director.
