Future Fund keeps faith in hedgies

Allocating one-sixth of a $78 billion portfolio to hedge funds and insurance-related assets is a major commitment, even for an investor as sophisticated as Australia's sovereign wealth fund. Admittedly the Sydney-based Future Fund has cut what it calls its alternatives exposure (which comprises only the above two asset types) to 16% as of June from 19% a year earlier. But other investors, such as family offices, have been more bearish on hedge funds post-crisis. Most of the hedg…