The University of Houston System's endowment management committee has approved a $20m investment in the Broad Reach Master Fund, an emerging markets-focused global macro hedge fund, according to a report by Pensions & Investments.

This allocation is part of the system's $1.1bn endowment strategy, as revealed at the committee's meeting on 21 August.

The committee also decided to fully redeem its $21m investment in the HBK Offshore Fund, managed by HBK Capital Management, and its $19m investment in a global macro hedge fund managed by Davidson Kempner Capital Management. The specific name of the Davidson Kempner fund was not disclosed.

Over the past decade, Broad Reach has delivered double-digit annualised returns, compared to the 3.5% to 6% range achieved by the HBK and Davison Kemoner funds. Additionally, the endowment was found to be overweight in its hedge fund allocation, which currently stands at 6.5%, above its 5% target.