Texas Permanent School Fund Drops Two More Managers

The Texas Permanent School Fund (TPSF) has dropped two more managers to save on hedge fund fees and streamline relationships. The TPSF dropped GAM Holdings AG and Mesirow Financial Inc. Holland Timmins, the chief investment officer of the TPSF, pushed for the modification as 10% of TPSF assets are invested in hedge funds, yet they derive 44% of investment expenses. Mr. Timmins distributed documents to trust board members stating that hedge fund fees cost TPSF about US$ 82.7 million since 2008. Mr Timmins has preferred to allocate in-house management of hedge fund managers over time.

From September 30, 2012 documents showed that GAM and Mesirow Financial managed US$ 666 million in assets. Money from these managers is to be allocated between Blackstone Alternative Asset Management and Grosvenor Capital Management. In July 2012, TPSF terminated K2 Advisors LLC from Stamford, CT from managing US$ 405 million.


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