Key Takeaways
- • Christopher Schelling, age 38, was named a 2014 Hedge Fund Rising Star while serving as deputy CIO of Kentucky Retirement Systems, overseeing the pension plan's absolute-return portfolio and strategic investment direction.
- • KRS manages a $15.2 billion total plan with a $1.5 billion hedge fund portfolio that Schelling is tasked with building and diversifying through direct manager investment—a shift from prior strategy.
- • Schelling has hired five hedge fund managers with four additional managers recently approved, targeting direct investment in approximately 20 hedge funds total as part of the portfolio diversification mandate.
- • Prior to joining KRS in 2011, Schelling worked as an investment consultant at Mercer Investment Consulting in Chicago and holds advanced degrees including an MBA and master of science in financial markets from Illinois institutions.
- • Beyond his institutional role, Schelling teaches alternative investing at the University of Kentucky, contributing to professional education in the hedge fund and alternatives space.
Summary
Christopher Schelling's recognition as a 2014 Hedge Fund Rising Star reflects his significant role in reshaping Kentucky Retirement Systems' alternative investment strategy. As deputy CIO of the Frankfort, Kentucky–based pension plan, the 38-year-old executive oversees the absolute-return portfolio for the $15.2 billion retirement system while guiding broader strategic direction, manager research, and investment policies.
Schelling joined KRS in 2011 after a tenure at Mercer Investment Consulting, where he worked as an investment consultant in Chicago. His educational background spans business and finance disciplines, including an undergraduate degree from the University of Illinois at Urbana-Champaign, an MBA from the University of Illinois at Chicago, and a master of science in financial markets from the Illinois Institute of Technology at Chicago.
Since arriving at KRS, Schelling's primary mandate has centered on building and diversifying the plan's $1.5 billion hedge fund portfolio through a shift toward direct manager investing. To date, he has successfully hired five hedge fund managers, with an additional four managers recently approved by the plan. The strategic goal is to deploy capital directly across approximately 20 hedge funds, representing a meaningful expansion and diversification of the plan's alternatives allocation. This direct-investment approach represents a departure from previous KRS methodology and positions the pension system for more targeted exposure across multiple hedge fund strategies.
In addition to his institutional responsibilities, Schelling maintains an active role in alternative investment education, teaching a course in alternative investing at the University of Kentucky. This dual engagement—bridging institutional capital deployment with academic instruction—underscores his positioning as a thought leader within the hedge fund and alternatives investment community during a period of significant growth in pension plan allocations to alternatives.
Schelling joined KRS in 2011 after a tenure at Mercer Investment Consulting, where he worked as an investment consultant in Chicago. His educational background spans business and finance disciplines, including an undergraduate degree from the University of Illinois at Urbana-Champaign, an MBA from the University of Illinois at Chicago, and a master of science in financial markets from the Illinois Institute of Technology at Chicago.
Since arriving at KRS, Schelling's primary mandate has centered on building and diversifying the plan's $1.5 billion hedge fund portfolio through a shift toward direct manager investing. To date, he has successfully hired five hedge fund managers, with an additional four managers recently approved by the plan. The strategic goal is to deploy capital directly across approximately 20 hedge funds, representing a meaningful expansion and diversification of the plan's alternatives allocation. This direct-investment approach represents a departure from previous KRS methodology and positions the pension system for more targeted exposure across multiple hedge fund strategies.
In addition to his institutional responsibilities, Schelling maintains an active role in alternative investment education, teaching a course in alternative investing at the University of Kentucky. This dual engagement—bridging institutional capital deployment with academic instruction—underscores his positioning as a thought leader within the hedge fund and alternatives investment community during a period of significant growth in pension plan allocations to alternatives.
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