New Jersey's Pension Fund to Cut Hedge Fund Allocation in Half
- State’s hedge fund investments valued at $4.3 billion
- In 2016, pension also voted to reduce its fund exposure
The New Jersey State House stands in Trenton.
Photographer: Ron Antonelli/Bloomberg
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The New Jersey State Investment Council unanimously voted to cut its target allocation to hedge funds in half, reducing investments in these partnerships to about $2 billion.
The pension fund approved the plan on Wednesday to trim the exposure to 3% from 6% under pressure from labor unions looking to reduce fees to investment managers. The state’s hedge fund allocation had a market value of $4.3 billion as of April 30.