Oct. 7 (Bloomberg) -- The San Francisco Employees’ Retirement System board on Wednesday will consider whether to add hedge funds to its asset allocation, just as the California Public Employees’ Retirement System announced plans to divest such investments.
The board should approve investing 15 percent of its assets in hedge funds, which would offer good returns and low volatility, according to a recommendation in an October memo from William Coaker, the fund’s chief investment officer.
“Hedge-fund returns have been more consistent,” Coaker wrote. “They have provided good protection in market downturns.”
Calpers, the largest U.S. pension, last month announced plans to pull its entire $4 billion in hedge-fund investments, citing their expense and complexity. Other pension plans, including those in New Mexico, Ohio and Illinois, said they don’t plan to exit the asset class. New Jersey’s state pension fund in June said it had added $1.1 billion to hedge funds since the start of its 2014 fiscal year.
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