The California State Teachers’ Retirement System (CalSTRS) has selected Lyxor Asset Management as its advisor in the development of a new global macro hedge fund strategy.
The selection of Lyxor concludes a 15-month selection process for a consultant to help CalSTRS investment staff initiate, monitor and assess its global macro hedge fund strategy.
The new strategy is part of the CalSTRS Innovation Portfolio and will be implemented on a trial basis for up to a three-year period to determine its value to the larger CalSTRS investment portfolio.
“In these times of economic volatility and uncertainty, it’s important to diversify the CalSTRS portfolio into areas that protect against downside pressures,” says CalSTRS Chief Investment Officer Christopher J Ailman. “We believe this strategy can help us accomplish this goal and Lyxor is vital to its inclusion into the CalSTRS portfolio during this trial period.”
Steven Tong, director of the CalSTRS Innovation & Risk unit, says: “During our search, Lyxor emerged as the top contender because of its strong track record in thoroughly vetting and overseeing global macro managers and hedge fund portfolios for large institutional investors such as CalSTRS.”
“We are extremely pleased to be working with CalSTRS, as it underscores our commitment to the US market and illustrates our ability to partner with the largest, most sophisticated institutional investors in the world,” says Lionel Erdely, CEO of Lyxor Asset Management Inc. “Since 1998 Lyxor has been focused on helping institutional investors benefit from hedge funds while mitigating many of the associated risks.”
CalSTRS staff will work with Lyxor to select three to six hedge fund managers. Within three years, the CalSTRS Investment Committee will determine whether to expand the strategy on a permanent basis, continue to monitor it on a temporary basis or terminate it.