Hedge Funds
CPP Investments Plans to Double Hedge Fund Allocation to About $160bn
Canada's largest pension manager is weighing more multistrategy and specialist managers over the next five to seven years, Bloomberg reported.
HedgeWeekly Hedge Fund Desk ·
CPP Investments, the manager of the Canada Pension Plan, intends to roughly double its hedge fund investments to about $160bn over the next five to seven years, according to a Bloomberg report relayed by Hedgeweek on Thursday. The fund currently has around $80bn allocated to the strategy.
The plan involves adding managers, with Millennium Management among those under consideration, as CPP Investments looks to widen exposure to large multistrategy platforms and specialist firms. Heather Tobin, who oversees the hedge fund portfolio, said both types of manager should stay in the mix, and that elevated interest rates and market volatility favour skilled managers.
CPP Investments already works with more than 60 managers, including Two Sigma, Bridgewater Associates, ExodusPoint, Rokos Capital Management and Magnetar. It also has exposure to Samlyn Capital and Arini Capital Management, both of which have recently struggled. The pension fund expects its total assets to roughly double over the next seven years; its Capital Markets and Factor Investing unit earned $3.4bn in the year to March 2026, with external hedge fund investments a major contributor.
Why it matters: a commitment of this scale would make CPP Investments an even bigger source of demand for multistrategy capacity at a time when some pensions, endowments and foundations are constrained by slow private equity distributions. The report follows increased hedge fund allocations by the Abu Dhabi Investment Authority, pointing to uneven but significant sovereign and pension appetite for the industry.