The Hedge Fund Investor Map takes publicly available data from both public and private pension plans, university endowments, and foundations in all 50 states to show what groups are investing in hedge funds. Public pensions such as the AFL-CIO, AFSCME, or Florida Retirement System, and corporate pensions like UPS, 3M, or John Deere all invest in hedge funds. In fact, public pension funds represent the largest portion of capital invested in hedge funds by institutional investors at over 22%.

1. Who Invests In Hedge Funds
In My State?
Managed Funds Association | February 2014

2. Overview
Millions of people across America benefit from hedge fund
investments in ways they may not immediately recognize.
These benefits come in the form of retirement security provided
by a pension plan, scholarships provided by universities that
invest with hedge funds and local economic development or
educational programs funded by charitable groups that invest.
This presentation is designed to provide a brief overview of the
ways that hedge fund investments provide real, meaningful
benefits for millions of individuals and families across the U.S.,
with real examples from states across the nation.
Hedge Fund Investor Map:
To learn about hedge fund investing in your state, visit or download the
Managed Funds Association’s Hedge Fund Investor Map.
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3. 1
Who invests in hedge funds?
Hedge funds originated as an investment vehicle to help diversify portfolios, manage
risk, and produce reliable returns over time. While hedge funds’ investor base has
evolved though the years – from individuals to institutions such as pension plans,
universities, and foundations – their core goals have not.
Simply put, hedge funds are a tool that helps millions of people meet their financial
goals and obligations.
Hedge funds’ investor base has evolved significantly over the years, with 66% of assets
under management currently coming from institutional investors such as pension funds,
university and nonprofit endowments.*
This partnership is strong and growing. In 2013, 84% of investors said hedge fund
performance met or exceeded their expectations.*
FACT: 66% of hedge fund
assets are held by
institutional investors.
*Source: 2014 Preqin Global Hedge Fund Report.
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4. 2
Hedge Funds and Pensions:
Strengthening Retirement Security
Public and state employee pension plans offer retirement security for millions
of workers, retirees, and their families. They have increasingly partnered with
hedge funds to help diversify their investments and help to provide economic
security to beneficiaries.
In fact, public pension funds represent the largest proportion of capital invested
in hedge funds by institutional investors at over 22%.*
Examples of public pension plans investing in hedge funds include:
Many of the largest employers in the U.S. also view hedge funds as an
essential tool in their investment toolbox to help provide reliable, riskadjusted returns that enable their plans to pay the retirement benefits to
millions of Americans.
Examples of Corporate Pension plans investing in hedge funds include:
*Source: 2014 Preqin Global Hedge Fund Report.
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5. Case Study:
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How Californians Benefit from Hedge Funds
Across the state of California, hedge funds are helping people attain retirement security,
expand access to quality higher-education and improve the quality of life in communities
through important work done by non-profits and charities. For Example:
California Public Employees Retirement System (CalPERS) manages
retirement benefits for 1.6 million Californians. The plan covers state
employees, school employees, and local public agency employees. In
2012, CalPERS invested $5.2 billion of its $236.9 billion total assets in
absolute return strategies which include hedge funds.
The University of California system has 10 campuses and a total
membership of more than 184,000 members. In 2012, the University
of California system invested $3 billion in absolute return products.
The University’s investments total more than $42 billion.
The James Irvine Foundation has funded more than $1 billion in
grants to over 3,500 nonprofit organizations across California,
with focusing on educational opportunities for California youth,
economic development projects, and career training initiatives for
low- income students. In 2011, the Irvine Foundation managed a
$1.6 billion portfolio and invested over $313 million, or 20%, in
absolute return hedge funds.
For more information on how hedge fund investments benefit millions across California, click here.
Not from California? Find out how hedge fund investments benefit residents in your state here.
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6. 4
University and College Endowments
Invest in Hedge Funds
University and college endowments were among the first institutions to partner with
hedge funds in the early 1990’s, and this relationship has strengthened in recent years.
Hedge fund investments help universities grow assets to provide funding for:
scholarships, athletics, research, salaries for professors and other resources critical to
their mission.
Chances are, if you have a son or
daughter attending college on a
scholarship, they are likely benefitting
from hedge fund investments.
Endowments investing in hedge funds include:
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7. 5
Case Study:
How Kansans Benefits from Hedge Funds
Kansas Public Employees Retirement System (KPERS) oversees three
defined-benefit plans for state and local public employees and its
membership totals more than 281,000 active, inactive and retired
members. According to its 2012 annual financial report, KPERS has
more than $16.3 billion in total assets. Of that $16.3 billion, KPERS
placed more than $387 million into an alternative investment
portfolio that included hedge funds.
The University of Kansas’ endowment invested more than $424
million, or about 29%, of its total endowment into an alternative
investment portfolio that includes hedge funds in 2012.
Boeing employs 1,891 Kansans, and nearly 12,000 Boeing retirees
live in Kansas. According to its most recent financial report in 2012,
Boeing invested $2.5 billion in hedge funds, roughly 5% of the
company’s defined benefit plan, which totals $50 billion.
For more information on how hedge fund investments benefit millions across Kansas, click here.
Not from Kansas? Find out how hedge fund investments benefit residents in your state here.
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8. 6
Foundations and Non-Profits
Invest in Hedge Funds
Non-profit foundations and charitable organizations around the world partner
with hedge funds to help establish the financial resources needed to fund
critical projects in local communities.
Here are examples of types of foundations at work across America that partner with hedge funds:
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9. 7
Hedge Fund Investor Map
If you’re interested in learning more about the real, meaningful ways that
residents in your state benefit from institutions partnering with hedge
funds, visit or download the Managed Funds Association’s Hedge Fund
Investor Map.
Download the app for iPad here
View the map on a web browser here
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