US - The Ohio Public Employees Retirement System (OPERS) has issued a request for tender for two to three fund of hedge fund or multi-strategy hedge fund providers.
The $64.5bn pension scheme plans to invest between $25m to $50m in fund of hedge fund or multi-strategy providers. It has stipulated a return benchmark of LIBOR plus 4%, with ”sufficient” diversification to minimise correlation to traditional asset classes, and a targeted risk budget of less than 7% annually. The programme is to be invested for “a multi-year period,” according to plan’s RFP.
Additionally, OPERS is searching for managers that are willing to help the fund “study the hedge fund universe and determine the requisite skills and experience needed to manage a hedge fund allocation on a direct basis.”
Potential managers must have $500m in AUM as of 31 December 2004, not employ leverage at the product level, and have key decision makers who have worked in their current positions for at least three years, among other criteria. Proposals must be received by the fund by 31 March 2004.
OPERS consultant Ennis Knupp + Associates is assisting with the search.
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