Allianz Global Investors Liquidates Two Structured Alpha Hedge Funds

Posted on 03/27/2020


Allianz Global Investors (AllianzGI) is liquidating two hedge funds. The reason is that the two funds, Allianz Structured Alpha 1000 LLC and Allianz Structured Alpha 1000 plus, were net buyers of puts and took significant losses in recent weeks on options trades.

The Allianz Structured Alpha 1000 plus seeks to generate returns of 10% to 14% annually, net of fees, on top of the 90-day Treasury bill.

In 2014, upon recommendation from investment consultant Callan Associates, the Alaska Retirement Management Board committed US$ 200 million to the Allianz Structured Alpha 1000 Plus fund. San Diego City Employees’ Retirement System invested in the Allianz Structured Alpha fund in October 2016 and had US$ 281,669,502 in the strategy as of December 31, 2019.

In 2016, after strong inflows of investor capital, Allianz closed the Allianz Structured Alpha fund to new investors as of November 8, 2016, as it reached its capacity limit of US$ 7 billion.

Keywords: Allianz SE, San Diego City Employees Retirement System.