Pension funds -- traditionally among the stodgiest investors around -- are starting to dabble in hedge funds, real estate and other "alternative" investments once considered too dicey. Now, a major fund in Texas is about to place a much bigger bet. The Teacher Retirement System of Texas is planning to shift about one-third of its $112 billion in assets to alternative investments. It's one of the largest-ever pension-fund wagers on investments like these. Source : http://online.wsj.com/article/SB118...l?KEYWORDS=hedge+fund&COLLECTION=wsjie/6month Finally, pension funds waking up ! Good news for hedge funds !
It's better than seeing these self-appointed pension fund managers buying up CDOs because of the good return and getting fucked. At least there will hopefully be some oversight and safety net put in place...we'll see how this blows up though, it will somehow or some way as seems like something that plagues pension funds.
Suss, thanks for the sell-signal. When "conservative" investors start doing "risky" things, it tends to make for long-term tops in the most extended sectors.
The shift into alternative strategies is still in its infancy. Only $1.6 trillion in alternatives right now.
It's generally a good contrarian indicator that when these big public funds start doing something, the gig is up and it's time to move on. They are always buying at the top and selling at the bottom. They were moving into timber partnerships about two years ago, just as Harvard, Yale, and International Paper were dumping huge lots onto the market.
this is the solution to the nationwide teacher shortage. Between Texas, NJ, California, no one will be able to retire, so they'll keep working into their 80's. Alternative investments for one percent, and they're going to trust Wall St. Why don't they just take calls from telemarketers. It'll save a lot of time.