The Teachers’ Retirement System of the State of Illinois (TRS) has made a $250m commitment to Capstone Drummer Fund, LP, marking its only active allocation to the hedge fund manager within TRS’s $4.1bn Diversifying Strategies Portfolio.
The move reflects TRS’s continued focus on hedge fund strategies to enhance portfolio diversification. The pension system, which manages $79bn in total assets and serves over 456,000 members, has increasingly looked to alternative investment strategies to generate uncorrelated returns and manage risk amid volatile markets.
The TRS Board of Trustees made the decision at its October meeting, alongside other commitments across the portfolio, including $65m allocation to private equity fund NGP Royalty Partners III, and a combined $300m to private credit vehicles CapitalSpring Investment Partners VII and LCM Partners COPS V.
