The University of California’s investment fund is to stop making hedge fund allocations and will instead commit more of its capital to private credit investments, according to a report by Bloomberg.
The University of California’s investment fund (UC Investments) is to stop making hedge fund allocations and will instead commit more of its capital to private credit investments, according to a report by Bloomberg.
UC Investments, which manages about $152 billion, including retirement, endowment and cash assets, has been investing in hedge funds for two decades and had $4.38 billion in absolute return funds as of 31 December. According to chief investment officer Jagdeep Bachher though, a change of strategy has been agreed.
In a meeting on Thursday, Bachher said: “Within two or three years, whenever we can get liquidity from our hedge funds, we will be primarily all out. Once we’re out, we’ll replace that obviously with private credit – which has been a better place to be.”
