The State of Wisconsin Investment Board’s (SWIB) Funds Alpha Team was honored September 12 in New York City, winning Institutional Investor’s Allocators’ Choice Award for 2024 Hedge Fund Allocator of the Year.
The eight member Funds Alpha Team was nominated for growing SWIB’s hedge fund portfolio through exceptional performance, innovation, and strategic vision, and positioning themselves as leaders in the hedge fund industry.
“The Funds Alpha Team has grown its hedge fund portfolio to an impressive $8.3 billion, generating over $1.4 billion in value-add for the Wisconsin Retirement System (WRS) from 2018-2023,” SWIB Executive Director/Chief Investment Officer Edwin Denson said. “This achievement underscores their ability to deliver substantial returns above their cost of capital while adhering to a low realized equity beta, reflecting their commitment to managing risk effectively in providing a true overlay.”
Central to the team’s success is their focus on building and maintaining close, strategic partnerships. SWIB’s Funds Alpha Team has established itself as a preferred partner to key relationships by customizing investment and fee structures. SWIB’s Funds Alpha Team has also excelled with their co-investment program, which has provided an 18% return over the last two years with negligible equity beta. This remarkable performance demonstrates their ability to generate superior returns while maintaining a low-risk profile. In an industry where capital efficiency is paramount, SWIB’s Funds Alpha Team has been at the forefront of innovation. They have conducted primary research studies on the impact of interest rate regimes on hedge fund returns and identified strategies that efficiently pass through cash rates.
The Allocators' Choice Awards are financial awards given by Institutional Investor -- a leading international financial publication -- to recognize industry leaders. The awards were created as a way for asset allocators to recognize deserving peers for their work in different categories.
Finalists were selected based on nominations submitted over the summer and were vetted by Institutional Investor's editorial team. Only institutional asset owners were eligible to vote in the Allocators' Choice Awards. This included staff members of retirement systems, endowments, foundations, sovereign funds, central banks, family offices, but not consultants, asset managers, or other service providers.
Click here to learn more about the Allocators’ Choice Awards.
Note: Pictured is SWIB’s Head of Funds Alpha Derek Drummond accepting the 2024 Hedge Fund Allocator of the Year Award.
About SWIB
The State of Wisconsin Investment Board (SWIB), created in 1951, is an independent state agency responsible for managing the assets of the Wisconsin Retirement System (WRS), the State Investment Fund (SIF), and other state trust funds. As of December 31, 2023, SWIB managed more than $155 billion of total assets, approximately 85% representing WRS assets. SWIB’s management of the WRS trust funds aims to provide a fully funded public pension for over 677,000 current and former employees of state agencies, the university system, school districts, and most local governments. The WRS consistently ranks among the 10 largest public pension funds in the U.S. For more information about SWIB, visit www.swib.state.wi.us.