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Hartford HealthCare puts $49M with 2 real estate managers

by trusted insight posted 3years ago 565 views
Hartford HealthCare, Hartford, Conn., committed $27 million to Stockbridge Value Fund II, a value-added real estate fund managed by Stockbridge Capital Group and $22 million to Long Pond Capital QP Fund, a global value real estate fund managed by Long Pond Capital, said David J. Holmgren, chief investment officer to Pensions & Investments. 

The existing 5% real estate portfolio is mostly in core real estate, which is split between LaSalle Investment Management for liquid holdings and AEW Capital Management in semi-liquid holdings, Mr. Holmgren said.

“Our recent project has been actively seeking to tier out the interest rate sensitivity as well as populate the (real estate) class with return-seeking funds,” Mr. Holmgren said.

The real estate allocation is half of Hartford HealthCare’s 10% economically hedged asset allocation, with the remaining half in natural resources. Its remaining allocation is 55% in growth strategies, which include private and public equities, and a 35% risk-reduction allocation, which includes hedge funds and fixed income.

Real estate consultant Mercer and hedge fund consultant Aksia assisted.

Also, Kevin Edwards, Hartford HealthCare’s senior investment director in charge of manager selection, and Mercer are analyzing whether to add hybrid real estate debt funds to further diversify the portfolio, but no new searches have yet being planned, Mr. Holmgren said.

Separately, Nick Marinos was named investment operations director at Hartford HealthCare, Mr. Holmgren said. The position is new.

Mr. Marinos is one of four senior officers at Hartford HealthCare, joining Messrs. Holmgren and Edwards, and Andrew Frongello, investment director in charge of risk and performance.

Mr. Marinos was director of operations at wealth management firm Private Client Resources; prior to that, he was associate director of hedge fund administration at SS&C GlobeOp; he left there in 2013.

Hartford HealthCare has $3 billion in pension, endowment and insurance assets.

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