Aussie pensions plan to boost hedge exposure

Australia’s superannuation funds such as HostPlus and Rest Super are looking at raising their allocations to hedge funds, despite their long-standing aversion to the level of fees charged*. HostPlus, a A$15 billion fund for the hospitality sector, plans to increase the number of hedge funds in its portfolio with the aim of dampening volatility and reducing correlation risk. Its alternatives allocation includes hedge funds and credit, but not property and infrastructure, and form…