Modern Investor - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Tull: we’re getting what we want from hedge funds

Tull: we’re getting what we want from hedge funds

We have interviewed several investors asking them about the biggest issues they are facing at the moment. Here's what Tom Tull, CIO of Texas ERS, told us.




Name: Tom Tull
Role: CIO, Investments Division, Employees Retirement System of Texas
City: Austin, US

When Bill Gross decided to change his engagement, it provided us with an opportunity to hit the market place. We are in the process of building our high yield credit book, so when we saw Florida indicate they were going to redeem $2billion from the PIMCO space in addition to other redemptions from PIMCO, we took the opportunity to increase our exposure to the asset class. We were able to pick up some merchandise, never as much as you want, at very competitive prices.

News that CalPERS was divesting from hedge funds, though, didn’t have as much effect on our portfolio. At the Employees’ Retirement System Of Texas, we won’t be following suit as we have a very different way of working with hedge funds.

We have been using them to reduce risk, enhance returns, access niche markets and to diversify current allocations.

Our absolute return portfolio has generated an annualised return of approximately 7.2% with 2.6% annualised standard deviation. We’re also making savings through fee negotiations in excess of $15 million since inception of the programme in August 2012. So we’re getting what we want out of hedge funds.


To join the conversation and air your views, Tweet us @amoderninvestor using the hashtag #InvestorChallenge

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire DACH 2016

    Citywire DACH 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Berlin 2016

    Citywire Berlin 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Switzerland 2016

    Citywire Switzerland 2016

  • Citywire Thailand 2016

    Citywire Thailand 2016

  • Citywire Paris Alt Ucits 2016

    Citywire Paris Alt Ucits 2016

  • Citywire Deutschland 2016

    Citywire Deutschland 2016

  • Citywire Amsterdam 2016

    Citywire Amsterdam 2016

  • Citywire Montreux 2016

    Citywire Montreux 2016

  • Citywire Latin America 2016

    Citywire Latin America 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Munich 2016

    Citywire Munich 2016

  • Citywire Zurich Alt Ucits 2016

    Citywire Zurich Alt Ucits 2016

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Global New Ideas 2015

    Citywire Global New Ideas 2015