The Oregon Investment Council (OIC – Oregon State Treasury) is making significant strides in overhauling its investment portfolio, signalling a promising future for the $95.4 billion Oregon Public Employees Retirement Fund (OPERF).
In the hedge fund space, OIC has diligently diversified its strategies and managers, with eight new hedge fund strategies totalling $2.45 billion in commitments over the last 16 months. The council’s focus on building anchor relationships in relative value, event-driven, and global-macro strategies, alongside expanding the CTA portfolio, demonstrates a prudent approach to investment diversification.
The diversifying strategies portfolio returned an impressive 16.5% in 2022, outperforming the benchmark. The team’s emphasis on strategy weight and equity long-short further shows their dedication to finding attractive opportunities. Notably, OIC is also revamping its public equity allocation. The restructure aims to address tracking error issues and enhance alpha generation through high conviction active managers. By balancing factor exposure and adding passive international allocation, OIC is on track to optimise its public equity investments.
Overall, OIC’s strategic decisions demonstrate a commitment to diversification, risk management, and generating attractive returns. The measured approach and commitment to enhancing the portfolio’s construction demonstrate OIC’s dedication to achieving strong results for OPERF’s members.