Steve Mitchell answers Molly's question: What per cent of STRS's assets are in hedge funds?

Mon, 28 Nov 2005

Molly

STRS Ohio has only one hedge fund investment ($50 million) with a very reputable external manager and represents only 0.08% of STRS Ohio's total investment assets. This was made several years ago to obtain some exposure to this type of investment.

Over the years, STRS has considered increasing its exposure significantly to hedge funds, yet determined that the negatives (pointed out in the New York Times article) were greater than the positives. With the recent Asset/Liability Study, the Blue Ribbon Committee investigated this once again and determined not to make hedge funds a separate asset class which would require investing over $1 billion.

Therefore, we plan to increase STRS Ohio's exposure to hedge funds moderately utilizing reputable external managers.

Steve Mitchell