Saturday, June 28, 2008

Pension Funds Drive Growth Of Alternative Assets. And: CalPERS Up 68% on Commodities; Down 31% on Real Estate. Action, Baby, Action!

From FinAlternatives:

Last year, alternative assets managed on behalf of pension funds by the world’s largest 99 investment managers grew by 40% to US$822 billion from US$586 billion in 2006.

According to research by Watson Wyatt and Global Investor magazine, over half the top 99 managers are based in the U.S., while over a third are based in Europe. Real estate managers lead the ranking, occupying the top nine positions and accounting for 62% of the assets. Infrastructure and commodities remain smaller, but growing alternatives classes among pension funds with the top 10 managers in these areas being responsible for US$43bn and US$16bn of assets respectively....MORE

Sometimes I wonder about stories like this, from the Sacramento Bee:

Rising commodity prices bring a windfall to CalPERS

Runaway oil and food prices are angering consumers but yielding sweet profits for investors such as the California Public Employees' Retirement System.

CalPERS has racked up a 68 percent return playing the commodities market in the past 12 months....
And this from Bloomberg:

Calpers May Sell Some Land Holdings After 31% Decline
...One of the Calpers ventures under review is LandSource Communities Development LLC, a 15,000-acre tract north of Los Angeles known as Newhall Ranch, which filed for Chapter 11 bankruptcy protection June 8 after failing to restructure its debts with lenders. Calpers paid $970 million in cash and property to homebuilder Lennar Corp. through adviser MacFarlane Partners for 62 percent of the development in January 2007....

But then I think: "Come on seven, baby need a new pair of shoes!"