BOSTON Nov 14 Massachusetts' state pension
fund, which has invested roughly $5 billion in hedge funds, said
on Wednesday that it hired a former money manager and current
business school professor to oversee these types of investments.
Eric Nierenberg, who earned three degrees from Harvard,
including a doctorate in business economics, will join the
Massachusetts Pension Reserves Investment Management Board as
its senior investment officer-hedge funds and low volatility
strategies, Michael Trotsky, the fund's executive director, said
in a statement.
"Eric's superb qualifications in investment analysis will
help us apply rigorous scrutiny to existing and potential
investment strategies," Trotsky said.
The $50 billion state pension fund, which has money with big
name managers, including Paul Singer, Alan Howard, and William
Ackman, has long relied on hedge funds to help boost returns. It
recently opted to select its managers directly instead of paying
extra fees to so-called funds of funds for that work. The move
is expected to save the pension fund $36 million a year in fees.
Nierenberg fills one of several open spots at the pension
fund, which has faced public criticism over salaries. The
Massachusetts pension fund has struggled, like other public
funds, to woo investment executives to positions that pay far
less than the Wall Street salaries many are used to earning.
Trotsky, the fund's executive director, recently took on the
additional role of chief investment officer after that position
had been open since the summer.
Nierenberg was a portfolio manager at Lee Munder Capital
Group. He also worked at Independence Investments and Charles
River Associates. He currently teaches graduate level courses in
investments, options and derivatives and international portfolio
management at Brandeis University.