GLOBAL – The €193.6bn Dutch civil service pension scheme ABP will next month transfer its New York-based hedge fund team to a newly established funds-of-funds outfit called New Holland Capital.
The move follows rapid changes and increasing competition in the hedge fund industry over the past few years, which demanded a restructure of ABP’s hedge fund business model, said the scheme.
“We felt that the current structure was not sustainable and we had the best chance of protecting ABP's interests by addressing it proactively,” an ABP spokesperson told IPE.
“Thus, ABP has formulated a business model that combines the focus, customization and control of a captive internal team with the specialized skill, intensity and incentives of a commercial fund-of-fund organisation.”
According to the scheme, New Holland is organized as a hedge fund advisor to ABP. However, ABP retains ultimate discretion and control.
Senior ABP hedge fund managers Thomas Dunn, Ira Handler and Adam Feild, will lead the 14-strong team at the group.
Meanwhile, ABP alternative investment CIO Paul Spijkers will continue to be the manager of the hedge fund outfit in his role as head of the alternative platform.
No job losses are expected during the team spin off, and New Holland even expects to appoint a further three to five people in 2007.
According to the spokesperson, “There will be no change in our policy for hedge fund investments.”
ABP currently allocates 2.5% or roughly $5bn (€4bn) of its investment portfolio to hedge funds with approximately 85% invested in 30 or more individual hedge funds and the remainder allocated to a handful of fund of hedge fund organizations for scale and diversification.