Key Takeaways
- • Virginia Retirement System led the list with a $400,000,000 allocation to Coatue Equity Fund, according to Dakota's compilation of 2021 public pension hedge fund commitments.
- • State of Wisconsin Investment Board committed $231,000,000 across three managers: TCW ($131M), Two Sigma Absolute Return Enhanced ($50M), and Libremax Value Fund ($50M).
- • Mass PRIM's $200,000,000 commitment to Power Pacific China A-Shares Absolute Return was the third-largest allocation, reflecting pension interest in China-focused absolute return strategies.
- • The nine largest disclosed allocations span equity, macro, credit, and Asia-focused strategies, with the top nine totaling roughly $1.2 billion.
Summary
Dakota, a fundraising and investment-distribution firm founded in 2006 by CEO Gui Costin, has published a ranking of the nine largest public pension allocations to hedge funds made in 2021. The list is drawn from publicly disclosed pension commitments and is intended to help investment salespeople track where public plans are deploying capital within the hedge fund space.
The largest commitment was Virginia Retirement System's $400,000,000 allocation to the Coatue Equity Fund. The State of Wisconsin Investment Board ranked second with $231,000,000 spread across TCW ($131,000,000), Two Sigma Absolute Return Enhanced ($50,000,000), and Libremax Value Fund ($50,000,000). Mass PRIM committed $200,000,000 to Power Pacific China A-Shares Absolute Return.
Kern County Employees Retirement Association allocated $112,000,000 across Garda Fixed Income Relative Value Opportunity Fund ($50,000,000), Aristeia Select Opportunities II ($50,000,000), and Pharo Macro Fund ($12,000,000). Los Angeles County Employees' Retirement Association committed $100,000,000 to AM Asia Strategies Fund, and Pennsylvania Public School Employees' Retirement System allocated $80,000,000 to Capstone Commonwealth Fund.
Rounding out the list, Texas County & District Retirement System committed $50,000,000 to Atalaya Asset Income Fund IV, Sacramento County Employees Retirement System allocated $45,000,000 to Eisler Capital Fund, and Oklahoma Police Pension & Retirement System committed $15,000,000 to Impactive Capital Master Fund.
The list highlights a mix of equity, macro, fixed income relative value, credit, and Asia-focused strategies among public pension allocators. Dakota's publisher context notes that alternative allocations among public pensions rose from 14% of risky investments in 2001 to 39% in 2021.
The largest commitment was Virginia Retirement System's $400,000,000 allocation to the Coatue Equity Fund. The State of Wisconsin Investment Board ranked second with $231,000,000 spread across TCW ($131,000,000), Two Sigma Absolute Return Enhanced ($50,000,000), and Libremax Value Fund ($50,000,000). Mass PRIM committed $200,000,000 to Power Pacific China A-Shares Absolute Return.
Kern County Employees Retirement Association allocated $112,000,000 across Garda Fixed Income Relative Value Opportunity Fund ($50,000,000), Aristeia Select Opportunities II ($50,000,000), and Pharo Macro Fund ($12,000,000). Los Angeles County Employees' Retirement Association committed $100,000,000 to AM Asia Strategies Fund, and Pennsylvania Public School Employees' Retirement System allocated $80,000,000 to Capstone Commonwealth Fund.
Rounding out the list, Texas County & District Retirement System committed $50,000,000 to Atalaya Asset Income Fund IV, Sacramento County Employees Retirement System allocated $45,000,000 to Eisler Capital Fund, and Oklahoma Police Pension & Retirement System committed $15,000,000 to Impactive Capital Master Fund.
The list highlights a mix of equity, macro, fixed income relative value, credit, and Asia-focused strategies among public pension allocators. Dakota's publisher context notes that alternative allocations among public pensions rose from 14% of risky investments in 2001 to 39% in 2021.
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