NPS adds Select Equity to single-manager hedge fund roster in Q1

New York-based Select Equity Group joined the roster of the National Pension Service’s (NPS) global alternative investment companies as a single-manager hedge fund house in the first quarter, according to the NPS’ recent announcement.

Including Select Equity, the number of the NPS’ single-manager hedge fund managers has increased to five, separate from two hedge fund investment companies which manage funds of funds for the South Korean pension plan.

NPS made its first allocation to single-manager hedge funds last year, allocating about 1 trillion won ($821 million) to four global hedge fund houses.

Select Equity Group manages over $20 billion in assets across long/short and long-only equity strategies.

As part of efforts to boost overseas and alternative investments, NPS reorganized its alternative investment division last year by asset class into real estate, infrastructure and private equity subdivisions, instead of dividing them between domestic and overseas investments.

Early this year, it abolished Korea-focused teams under the three investment subdivisions of private equity, real estate and infrastructure as part of its push to ramp up global investment.

It is aiming to increase the share of alternatives to around 15% of its total assets by the end of 2025 from the current 13%.

Write to Jung-hwan Hwang at jung@hankyung.com