Key Takeaways
- • Orin Kramer, chairman of the New Jersey State Investment Council, received the Hedge Fund Industry Awards' Outstanding Contribution Award for modernizing the state's $67.3 billion pension fund through strategic allocation to hedge funds and alternative investments.
- • New Jersey's shift toward hedge funds and alternatives—despite significant internal resistance from incumbent board members, union officials, and consultants—generated over $1 billion in savings during the 2008-2009 financial collapse, validating the diversification strategy.
- • Kramer transformed New Jersey into a model for institutional pension fund governance by converting the only state system still managing all assets in-house into a diversified, professionally managed portfolio that successfully navigated the post-2001 market collapse.
- • Kramer's background spans White House policy (Carter Administration domestic policy staff), consulting (McKinsey & Co.), and finance, including founding Boston Provident Partners in 1992, a hedge fund firm he continues to manage.
- • The recognition underscores Kramer's dual commitment to high finance and public policy, demonstrating how hedge fund expertise can drive institutional asset allocation strategy at the state pension level.
Summary
Orin Kramer, 64, chairman of the New Jersey State Investment Council, was honored with the Outstanding Contribution Award at the 2010 Hedge Fund Industry Awards for his transformational leadership in modernizing one of America's largest public pension systems. The recognition reflects his success in steering New Jersey's $67.3 billion pension fund toward hedge funds and alternative investments—a shift that proved both strategically sound and financially rewarding during the recent financial crisis.
When appointed to the board in 2002 by then-Governor James McGreevey, Kramer inherited a pension system facing acute challenges. New Jersey had suffered dramatic losses in the 2001 stock market collapse and remained uniquely positioned as the only state pension system still managing all assets internally. Facing vigorous opposition from incumbent board members, long-standing consultants, union representatives, and in-house asset managers, Kramer nonetheless championed a comprehensive asset reallocation away from equities toward hedge funds and alternatives. The strategic pivot was critical: New Jersey's pension fund desperately needed diversification to recover from equity market losses and reduce concentration risk.
The modernization effort proved vindicated by subsequent performance. During the 2008-2009 economic collapse, New Jersey's hedge fund investments and diversified portfolio saved the state more than $1 billion in losses compared to benchmark equity allocations. This substantial outperformance validated Kramer's vision and silenced critics who had questioned the allocation shift. The achievement established New Jersey's pension fund as a model of institutional governance and alternative asset integration within the public pension space.
Kramer's credentials extend well beyond his current role. A Yale University graduate and Columbia University School of Law alumnus, he served as associate director of the White House domestic policy staff during the Carter Administration. Following his public service, he worked in McKinsey & Co.'s financial institutions group before founding his own consulting practice. In 1992, he launched Boston Provident Partners, a hedge fund firm specializing in financial services sector investments that he continues to manage. Throughout his career, Kramer has maintained deep engagement with public policy, including service on President Bill Clinton's Commission to Study Capital Budgeting.
When appointed to the board in 2002 by then-Governor James McGreevey, Kramer inherited a pension system facing acute challenges. New Jersey had suffered dramatic losses in the 2001 stock market collapse and remained uniquely positioned as the only state pension system still managing all assets internally. Facing vigorous opposition from incumbent board members, long-standing consultants, union representatives, and in-house asset managers, Kramer nonetheless championed a comprehensive asset reallocation away from equities toward hedge funds and alternatives. The strategic pivot was critical: New Jersey's pension fund desperately needed diversification to recover from equity market losses and reduce concentration risk.
The modernization effort proved vindicated by subsequent performance. During the 2008-2009 economic collapse, New Jersey's hedge fund investments and diversified portfolio saved the state more than $1 billion in losses compared to benchmark equity allocations. This substantial outperformance validated Kramer's vision and silenced critics who had questioned the allocation shift. The achievement established New Jersey's pension fund as a model of institutional governance and alternative asset integration within the public pension space.
Kramer's credentials extend well beyond his current role. A Yale University graduate and Columbia University School of Law alumnus, he served as associate director of the White House domestic policy staff during the Carter Administration. Following his public service, he worked in McKinsey & Co.'s financial institutions group before founding his own consulting practice. In 1992, he launched Boston Provident Partners, a hedge fund firm specializing in financial services sector investments that he continues to manage. Throughout his career, Kramer has maintained deep engagement with public policy, including service on President Bill Clinton's Commission to Study Capital Budgeting.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.