Second Quarter Hedge Fund of Funds Performance Report As of June 30, 2010
3. Presentation by Pension Consulting Alliance, Inc. - Second Quarter Hedge Fund of Funds Performance Report as of June 30, 2010 3 Water and Power Employees’ Retirement Plan (WPERP) Hedge Fund of Funds Investment Portfolio Quarterly Report Executive Summary This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Pension Consulting Alliance, Inc. Nothing herein is intended to serve as investment advice, a recommendation of any particular investment or type of investment, a suggestion of the merits of purchasing or selling securities, or an invitation or inducement to engage in investment activity. Pension Consulting Alliance Inc J 2010 Quarterly Report Q2-10 HEDGE FUND OF FUNDS PORTFOLIO SUMMARY As of June 30, 2010, the WPERP Hedge Fund of Funds Portfolio had an aggregate value of $70.0 million. Recent Investment Performance Trends During the most recent quarter, the WPERP Hedge Fund of Funds Portfolio underperformed its policy benchmark by minus (2.3%), net of fees. Over the latest 1-year period, the portfolio outperformed its benchmark by 6.7%, net of fees. The Portfolio trailed its policy benchmark over the latest 3-year time period. Underperformance over longer time periods can be attributed to severe market corrections in the second half of 2008. However, due to a strong 2009-2010, longer-term performance has improved significantly. Since inception, portfolio performance has been positive, resulting in no principal loss. The Total Portfolio surpassed the Median Fund over all time periods. The WPERP portfolio added significant value over the Median Fund since inception, outperforming 3.4%, net of fees.
[Show full text]