Hedge fund mandate activity remained brisk in 2018 with 10 of the largest US pension investors directing more than $14bn into a vast array of hedge fund offerings.

A review of 2018 mandate data compiled by HFM InvestHedge and sister publication FundMap, shows that while this past year has seen less activity in the hedge funds space than years past that 2018 still saw interest in hedge fund strategies such as opportunistic credit, direct lending and quantitative strategies.

Among the largest reported capital injections was the California State Teachers Retirement System‘s $3.5bn spend in trend-following CTAs. The  $225bn pension topped up allocations to Alpha Simplex, AQR, Fort, Graham Capital, Isam and Lynx.

Some of the work began toward the end of 2017, however was completed in June 2018.

Coming in second place is $72bn MassPrim, which has placed $2.6bn in 2018 and has made plans to further its emerging manager programme which will be implemented through a new managed account arrangement.

The State of Wisconsin Investment Board, meanwhile, allocated an impressive $2.2bn to hedge funds including additional commitments to hedge fund giants such as DE Shaw and Davidson Kempner.

Also, allocating more than $1bn to hedge funds was the Texas County & District Retirement System, which added to a number of niche private credit strategies throughout the year in addition to well-known hedge fund brands such as Taconic, CQS and Napier Park.

Rounding out our top 10 ranking of hedge fund investors are: the Illinois Teachers Retirement System; Pennsylvania State Employees Retirement System; Maine Public Employees Retirement System; Walt Disney Defined Benefit Plan; Alaska Permanent Fund Corporation; and Texas Municipal Retirement System.

As two Texas pensions made our top 10 list, two other Austin-based plans are making waves too – Texas Employees Retirement System (ERS) and the Teacher Retirement System of Texas (TRS), which also allocated more than $500m to hedge funds in 2018.

ERS is working closely with TRS in scouting for emerging manager hedge funds in the new year as part of extensive plans to work with Paamco’s newly minted Launchpad business.

2018 mandate review: Direct lending, trend-following dominate on HFM InvestHedge.