New Mexico boosts hedge fund allocations

Date: Thursday, November 29, 2007
Author: Pensions & Investments

New Mexico State Investment Council, Santa Fe, increased the hedge fund allocation of two funds it oversees — the $10.85 billion Land Grant Permanent Fund and the $4.73 billion Severance Tax Permanent Fund — to 15% of assets from 10%, said Charles Wollmann, spokesman for the $16.33 billion system. The entire $1.4 billion hedge fund allocation is currently invested in hedge funds of funds. In the Land Grant fund, domestic equities will be trimmed to 51% of assets from 53% and domestic fixed income will be cut to 15% from 18%. The Severance Tax fund will decrease domestic equities to 48% from 53%. Council officials have not determined how they will proceed with searches for new hedge fund-of-fund managers or whether existing domestic equities or fixed-income managers will have their mandates trimmed.

Separately, the council committed $15 million to Wasatch Ventures IV. It also divested its $45 million in seven Darfur-related investments, which were part of a $1.3 billion international equity portfolio managed by AllianceBernstein.

The council’s private equity committee will recommend committing $25 million each to Carpenter Community Bank Fund and Ares Distressed Securities Fund and $15 million to vSpring III. Private equity consultant Aldus Equity is assisting. The council is scheduled to vote on the commitments at its Dec. 18 meeting.