While private equity funds have become responsible for an enormous amount of investment in the economy due to the increasing interest of pension funds, the literature that analyses private equity allocation is very scarce. These types of investments are not only attractive for pension funds...

This paper investigates the characteristics of US and Canadian pension funds that allocate assets to hedge funds. The typical pension fund that invests in hedge funds is a large sophisticated pension fund that diversi…es its portfolio across numerous classes of investments, private equity in...