ANCHORAGE, Ala. (HedgeWorld.com)–The Alaska Permanent Fund Corp., a state agency that invests the Alaska Permanent Fund, a US$27 billion oil-wealth savings account, hired Crestline Investors Inc., Fort Worth, Texas, to build a low-risk hedge fund portfolio of up to US$250 million.
Although the APFG’s headquarters is in Juneau, the six-member board of trustees met in Anchorage June 17 and June 18 to discuss the absolute return pilot program first announced in March 2004. The board selected Crestline, which currently has more than US$500 million assets under management, over two other finalist managers for its move into hedge funds.
Crestline manages three funds of funds in the TASS database: Crestline Event Arbitrage LP, Crestline Partners LP and Crestline Plus LP.
The other two finalists were: Pacific Alternative Asset Management Co., Irvine, Calif., and Quellos Capital Management LP, Seattle. All three firms made presentations on June 17 at the board meeting in Anchorage. These three finalists had been winnowed out of a broader field at the May meeting of the board (see Previous HedgeWorld Story).
AFPC will allocate 1% of the permanent fund to this program and expects returns greater than investment grade bonds but with a comparable risk level.
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