Investment Plan 2011 - OPERS

Ohio Public Employees Retirement System
2011 Annual Investment Plan
Hedge Funds
The Hedge Fund allocation is expected to grow from $105 million at the end of the third
quarter of 2010, to approximately $2 billion by the end of 2011. Staff is in the final stages
of the hiring process for new fund of hedge fund managers, which will be funded in 2011.
We are also in the process of identifying hedge fund consultants which will begin working
with the Board and Staff in 2011. In addition, we will focus on direct multi-strategy and
single strategy hedge funds to bring OPERS total allocation to the $2 billion level.
Opportunistic
The Opportunistic allocation allows OPERS to allocate to investment strategies or employ
instruments that do not fit within one of the traditional asset class categories. Each strategy
will be evaluated on its own merit and whether or not the strategy is feasible and scalable.
An internally managed Emerging Markets currency portfolio was developed and funded in
November 2010 and will likely be expanded in 2011. The Opportunistic Debt portfolios are
planned to be restructured to be more actively managed.
Commodities
The Health Care Fund’s commodity allocation of 1% was fully funded in 2010 and
commodity exposure has also been used tactically in the Defined Benefit Fund as part of
the Opportunistic allocation.
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