Reuters- Massachusetts, an early investor in hedge funds, has no plans to give in to pressure and start making direct investments in these loosely regulated portfolios, the state pension fund’s executive director said on Monday.
The $52 billion fund, called the Pension Reserve Investment Trust, has relied on hedge funds of funds to select 140 hedge fund managers since it first began putting money in this asset class in 2004.
Funds of funds traditionally charge heavy fees on top of the hedge funds’ fees but they had been popular because they are supposed to spread the risk of hedge fund investing.
