The pension fund currently holds about $80 billion in hedge fund allocations across more than 60 asset managers. Strong performance in these external vehicles generated most of the $3.4 billion in net income for its Capital Markets and Factor Investing division through March. As overall assets are forecasted to roughly double, executives plan to seek access to top-tier firms like Millennium Management while continuing to balance multistrategy giants with niche specialists.
Key points
Expanding hedge fund allocations will directly track the anticipated doubling of the over…: Expanding hedge fund allocations will directly track the anticipated doubling of the overall pension asset base over the next seven years.
Outperformance against internal benchmarks was powered by quantitative equity, global mac…: Outperformance against internal benchmarks was powered by quantitative equity, global macro, fundamental equity, fixed income, and multistrategy approaches.
Future capital deployment will target elite external operators not yet in the portfolio,…: Future capital deployment will target elite external operators not yet in the portfolio, including Izzy Englander's Millennium Management.
Sources checked by our analysis pipeline: 1
(Bloomberg) -- Canada’s largest pension is planning to roughly double the money it invests in hedge funds over the next five to seven years, a bullish signal from one of the industry’s most important backers.
The Canada Pension Plan Investment Board plans to boost its total hedge fund allocation to about $160 billion in the coming years, according to people familiar with the matter. It is particularly interested in gaining exposure to hedge fund giants it doesn’t currently invest with, including Izzy Englander’s Millennium Management, said the people, asking not to be named discussing internal deliberations.
The C$866 billion ($608 billion) pension currently has about $80 billion invested in hedge funds, according to the people. The expansion plans come as CPPIB expects its total assets to roughly double over the next seven years, and after hedge funds helped it outperform internal benchmarks in the last fiscal year.
External hedge fund investments were largely responsible for the $3.4 billion of net income generated by its Capital Markets and Factor Investing segment in the 12 months ended March, according to CPPIB’s annual…
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