Key Takeaways
- • The Canada Pension Plan Investment Board (CPPIB) plans to roughly double its hedge fund allocation to about $160 billion over the next five to seven years, according to people familiar with the matter, per Bloomberg.
- • CPPIB is particularly interested in gaining exposure to hedge fund managers it does not currently invest with, including Millennium Management led by Izzy Englander.
- • The planned expansion signals strong institutional conviction in hedge funds from one of the industry's largest pension backers.
Summary
The Canada Pension Plan Investment Board is planning to roughly double the capital it allocates to hedge funds over the next five to seven years, a move that would lift its total hedge fund allocation to about $160 billion, according to people familiar with the matter as reported by Bloomberg. The plan represents a significant bullish signal from one of the industry's most influential institutional backers.
According to the sources, who spoke on condition of anonymity because the deliberations are internal, CPPIB is particularly interested in gaining exposure to hedge fund giants it does not currently invest with. Among the managers named is Millennium Management, the multistrategy firm founded by Israel Englander, whose chief executive Izzy Englander is cited in the report.
The report does not provide details on the timing of specific allocations, the strategies being targeted, or whether the plan has been formally approved. Given that the figures come from unnamed sources discussing internal deliberations, the scale and timeline should be viewed as preliminary.
According to the sources, who spoke on condition of anonymity because the deliberations are internal, CPPIB is particularly interested in gaining exposure to hedge fund giants it does not currently invest with. Among the managers named is Millennium Management, the multistrategy firm founded by Israel Englander, whose chief executive Izzy Englander is cited in the report.
The report does not provide details on the timing of specific allocations, the strategies being targeted, or whether the plan has been formally approved. Given that the figures come from unnamed sources discussing internal deliberations, the scale and timeline should be viewed as preliminary.
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