* Arden to construct equity-event driven program
* Arden helping Massachusetts transition to hedge fund
By Svea Herbst-Bayliss
Jan 23 Arden Asset Management has won a $150
million mandate from Pennsylvania's $26 billion State Employee
Retirement System to help construct specialized investment
strategies that will rely on hedge funds, a person familiar with
the matter said on Wednesday.
New York-based Arden, which oversees $7 billion in assets
for pension funds and other clients, will construct a
multi-manager equity event program that is designed to deliver
equity-like returns but with the benefits of being more
Arden won the mandate at a time many state pension are
looking to the $2 trillion hedge fund industry to help raise
returns and protect portfolios in down markets.
States and other large institutional investors often rely on
firms like Arden to help tailor the investments to their
specific needs and gain access to some of the world's biggest
hedge fund managers.
Pennsylvania's chief investment officer, Tony Clark, has
been working to create what he calls pods of specialized
A spokesman for Arden declined to comment.
Arden has long been a favorite with state pension funds.
Last year it was hired by Massachusetts to help transition the
state's money to some of the world's biggest hedge funds
managers, including William Ackman's Pershing Square Capital
Management and Dan Och's Och-Ziff Capital Management.
Arden also manages money for the state of New Jersey and
recently helped create a program where mutual fund giant
Fidelity Investments will offer its retail customers access to
hedge fund managers through a mutual fund.
Traditionally, hedge funds have been off-limits to all but
the biggest and most sophisticated investors.