The Board Members of the Plymouth County Retirement Association (hereinafter “Board”) are seeking proposals from managers of a diversifying hedge fund strategy for its Hedge Funds asset class. This search is being conducted in an effort to comply with PERAC's seven-year investment vendor regulation. The Board has approximately $30 million currently invested in the asset class. Diversifying hedge fund strategies include, but are not limited to, global macro, relative value, market/duration neutral equity and/or credit, alternative risk premia, multi-strategies, and fund of hedge funds that include some, or all, of the previous strategies mentioned. A desired characteristic of the strategy is minimal net equity, credit spread, and duration exposure. These seek to generate uncorrelated returns to these commonly held from alpha and/or exposure to non-traditional risk premia. Evaluating strategies which may fit as diversifiers often includes considering approach, geography, breadth, and implementation. Investment managers may employ systematic or discretionary approaches and seek to generate excess returns through idiosyncratic risk exposures, predicting market moves or exploiting other market inefficiencies.
