LEXINGTON, Mass. (HedgeWorld.com)–Add the Town of Lexington Retirement System to the list of small- and mid-sized pension funds in Massachusetts that want access to hedge funds.
The problem Lexington and other smaller pension funds face is that the state’s Public Employee Retirement Administration Commission, which oversees and regulates public pension systems, does not allow funds with less than US$250 million in assets to invest in hedge funds.
Officials at the US$83 million Lexington system have said they may seek a waiver from Somerville-based PERAC. Joseph Connarton, PERAC’s executive director, said he had heard that the Lexington Retirement System wanted to invest in hedge funds and that it might file for a waiver, but he added fund officials had not yet filed any documents to that effect with the commission.
Lexington Retirement System officials did not return calls by press time seeking comment.
“We have not had any formal communication with the board on it, but we understand they are in discussions,” Mr. Connarton said. “They [Lexington] do not qualify under current guidelines, but we will certainly talk to them.”