Key Takeaways
- • Virginia Retirement System committed $400,000,000 to Coatue Equity Fund, the largest single public pension hedge fund allocation among the nine listed by Dakota in 2021.
- • State of Wisconsin Investment Board allocated $231,000,000 across three managers: TCW ($131,000,000), Two Sigma Absolute Return Enhanced ($50,000,000), and Libremax Value Fund ($50,000,000).
- • Mass PRIM placed $200,000,000 into Power Pacific China A-Shares Absolute Return, a China-focused equity strategy.
- • The nine allocations listed total approximately $1.23 billion, spanning equity, macro, credit, Asia-focused and activist strategies.
- • Dakota's list covers allocations made so far in 2021, drawn from public pension disclosures, and is intended as a tracking reference for investment salespeople.
Summary
Dakota, a placement and fundraising firm founded by Gui Costin that says it has raised over $40 billion for partners since 2006, published a ranking of the nine largest public pension allocations to hedge funds made in 2021. The list is intended as a reference for investment professionals tracking where public pension capital is flowing within the hedge fund universe.
The largest commitment was from the Virginia Retirement System, which allocated $400,000,000 to Coatue Equity Fund. The State of Wisconsin Investment Board followed with $231,000,000 split 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 committed $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 allocated $100,000,000 to AM Asia Strategies Fund.
Smaller allocations included Pennsylvania Public School Employees' Retirement with $80,000,000 to Capstone Commonwealth Fund, Texas County & District Retirement System with $50,000,000 to Atalaya Asset Income Fund IV, Sacramento County Employees Retirement System with $45,000,000 to Eisler Capital Fund, and Oklahoma Police Pension & Retirement System with $15,000,000 to Impactive Capital Master Fund.
The allocations show concentration in a handful of large commitments alongside a spread of credit, macro, Asia-focused and event-driven managers. Figures are as reported in the Dakota compilation; the article does not specify the underlying commitment dates or whether amounts represent total commitments or initial funding.
The largest commitment was from the Virginia Retirement System, which allocated $400,000,000 to Coatue Equity Fund. The State of Wisconsin Investment Board followed with $231,000,000 split 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 committed $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 allocated $100,000,000 to AM Asia Strategies Fund.
Smaller allocations included Pennsylvania Public School Employees' Retirement with $80,000,000 to Capstone Commonwealth Fund, Texas County & District Retirement System with $50,000,000 to Atalaya Asset Income Fund IV, Sacramento County Employees Retirement System with $45,000,000 to Eisler Capital Fund, and Oklahoma Police Pension & Retirement System with $15,000,000 to Impactive Capital Master Fund.
The allocations show concentration in a handful of large commitments alongside a spread of credit, macro, Asia-focused and event-driven managers. Figures are as reported in the Dakota compilation; the article does not specify the underlying commitment dates or whether amounts represent total commitments or initial funding.
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