Citing in-house investment expertise, New York’s pension plan appears to be trailblazing the way for other pensions to feel confident investing directly in hedge funds, not through funds-of-funds, Dow Jones reports. A year ago, New York’s state pension fund had $5 billion invested in hedge funds-of-funds. Today, at $500 million, that’s a mere shadow of its former self.

“We’re maturing. This is evolution,” said Robert Whalen, a spokesman for State Comptroller Thomas DiNapoli. “Funds-of-funds have been helpful and provided expertise and access to blue-chip funds. But we have a strong in-house staff now with the networking and contacts needed, so we can create a more direct model.”

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