* State pension fund puts $280 mln with 11 managers
* Most managers get $25 million allocation
* More managers expected to be hired in December
BOSTON, Oct 11 Massachusetts, which has long
bet big on hedge funds, hired 11 managers on Tuesday as part of
the state's push into direct investments with these types of
Trustees for the roughly $46 billion state pension fund
voted on Tuesday to send $280 million into some of the world's
biggest and best-known hedge funds.
A year ago, the pension fund agreed to stop using so-called
funds of funds to select hedge funds and thereby save on fees.
The state's treasurer, Steven Grossman, said that state prefers
to have a direct relationship.
Now the fund unveiled the first managers in its direct
hedge fund investment program.
Massachusetts sent $25 million to each of the following
fund firms: Anchorage Capital Group, Arrowgrass Capital
Partners, BlueCrest Capital Management, Brevan
Howard Capital Management, Claren Road Asset Management,
Elliott Management, Kingdon Capital Management, Och-Ziff
Capital Management Group , Taconic Capital Advisors and
York Capital Management. Viking Global Investors will receive
The pension fund used consulting firm Cliffwater LLC to
help find the hedge funds.
Another group of 10 managers is expected to be hired in
December, executives at the pension fund said.
In the past, hedge funds have helped shore up the
Massachusetts' pension fund's returns but this year many hedge
funds are experiencing though times amid concerns about
Europe's debt crisis, the stalled U.S. economy with its
stubbornly high unemployment rate, and concerns over upcoming
elections around the world in the next year.