SWITZERLAND – The ABB Investment Foundation, with over SFr 6bn (€4bn) under management for 36 Swiss-based pension funds, has appointed New-Jersey based Goldman Sachs Princeton LCC (GS) to manage its new SFr160m (€110m) hedge fund portfolio.
ABB made its intentions to enter the hedge fund market clear late last year when it confirmed it had enlisted a US-based adviser about the possibility of launching a hedge fund product in March.
The new fund has been constructed in conjunction with GS and is a multi-manager product with exposure to each of the main hedge fund sectors: relative value, event driven, equity long/short and tactical trading.
Daniel Dubach, chief investment officer at ABB, says he is looking for diversification when placing his pension fund clients’ money in hedge funds and believes GS can best deliver this.
“Having taken the decision to invest in hedge funds, we conducted an extensive research of providers. GS not only has a track record dating back to 1969, it continues to commit significant resources to finding, evaluating and monitoring the best hedge funds around the world,” he comments.
George Walker, co-head of GS hedge fund strategies group adds: “The recent correction in financial markets have allowed hedge funds to prove their worth, reducing volatility and boosting performance in portfolios. The case for these skill-based managers is now widely accepted, and leading investors continue to commit significant assets.”