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Texas Universities Add to Hedge Fund Allocations

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AUSTIN, Texas (–The investment management company that oversees US$12.6 billion in assets belonging to the University of Texas and Texas A&M systems plans to increase its hedge fund investments in the coming months.

Cathy Iberg, deputy chief investment officer for the University of Texas Investment Management Co., told Bloomberg at an industry conference that UTIMCO could boost its hedge fund allocations by as much as US$300 million in the next six months.

Underscoring that, the UTIMCO board decided to boost its investments in hedge funds managed by Oaktree Capital Management LLC, Los Angeles, and Eminence Capital, New York. UTIMCO upped its investment in an Oaktree Capital energy hedge fund to US$113 million from US$83 million and nearly doubled its investment in the Eminence Fund Ltd., adding US$50 million.

In total, UTIMCO has 22% of its endowment assets–or about US$2.7 billion–allocated to hedge fund strategies, according to the company’s asset allocation breakdown as of Sept. 30.