KCERA Taps Private Markets, Hedge Funds
The Kern County Employees’ Retirement Association, which has a $5.1 billion portfolio, added two funds to its private markets and hedge fund investments in February.
Pension officials have authorized a $50 million commitment to Juniper Capital as part of its private market portfolio. The Houston-based firm partners with management teams to offer capital to increase the value and productive potential of oil and gas properties in the U.S.
Hedge fund Elliott Associates received a $65 million pledge while officials were asked to allow the termination of Sculptor Domestic Partners II, which handled $48 million for KCERA as of June 30. Elliott is new to the KCERA hedge fund portfolio, which returned 6.8% in the fiscal year ended June 30, 2023.
According to recent meeting records, the system has a total portfolio weight of more than 12% in private markets due to increased fund commitments and capital call activity.
The current pacing implies that KCERA will reach its 18% target around 2026, officials said. The policy weight for hedge funds is 10% and as of November 2023 the allocation was 10.3%.
