Texas Permanent School Fund in Alternatives

“The changes triggered a transformation of the Permanent School Fund.

In 2006, the fund as a whole was relatively conservative, with about two-thirds of its investments in stocks, 20 percent in bonds, and the rest in state land and oil and gas rights. But over the next dozen years, the fund shifted its money into private equity and hedge funds — riskier fields with potentially higher returns.

In 2018, it had more money in such ‘alternatives’ — 38 percent — than any other asset class.”

Investing in alternatives during the longest bull market in history must be hard to swallow for many investment committees.

Houston Chronicle article on the Texas Permanent School Fund (Part I)

Texas State Capitol Dome

Post by Marcelino Pantoja