The Sfr3.3bn (e2.1bn) Geneva- based VeF Swissair pilots pension fund has awarded Zurich-based fund manager Unigestion a Sfr50m hedge fund brief as part of an ongoing allocation to the class.
Reto Kuhn, managing director at the fund, says the objective for VeF is to reduce the correlation of its overall portfolio with traditional markets, as well its volatility.
The portfolio will consist of 15 hedge funds, all run through Unigestion’s ‘Hemisphere’ funds product and invested according to all major strategies, except for a new short product Unigestion has created for VeF.
Kuhn adds: “We saw about 10
managers overall and carried out a due diligence process for three. The award is part of a gradual step towards a total hedge fund allocation of 3%, about Sfr150m.
“If the investment goes well when we look at the results in about six months time, we will be looking to increase the Unigestion portion to Sfr75m and then possibly take on a second manager for the remainder of the assets.”