First Lady’s former pension plan now fuelled by alternative investments
Mar 7th, 2008 | Filed under: Hedge Fund Industry TrendsIf Britt Harris is successful, the Bush family might be envious of the First Lady’s former teaching colleagues back in Texas. Harris, the CIO of the $100 billion Teachers Retirement System of Texas, steered the plan toward a 16.3% last year. (Truth be told, we’re not sure if the First Lady opted in or out of the plan back in the early 70’s when she taught in Dallas and Houston, but records seem to indicate that she is not in it right now). According to Harris, if he can allocate nearly $40 billion to alternative investments as planned, he thinks he can anticipate more above average returns in the future. (For vital stats on the plan see page 5 of the most recent TRS Newsletter).
Barron’s reports this week that Harris was brought on board in late ‘06 to revamp plan – particularly its adherence to the traditional “60/40″ equities/bonds split. Says Barron’s:
“A key element in Harris’ plan: greater use of hedge funds, whose combined strategies can offer more flexibility in tough environments. He also wants more exposure to private equity, both as an investor in funds and as a co-investor with buyout partners, in the same way that sovereign funds have lately been snapping up opportunities.”
However, as Barron’s reports, critics echo some of the concerns expressed by their neighbors in New Mexico (see related posting):
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