Mass. state fund adjusts hedge fund investments

Fresh from suffering its biggest-ever losses, Massachusetts' state pension fund will adjust its hedge fund investments by eliminating a technique that used a lot of leverage and cost the fund dearly in 2008...

They also agreed to reduce the overall investment to absolute return strategies, including hedge funds, to 8 percent from 11 percent, suggesting that the fund will have to remove more than $1 billion from hedge fund managers with whom it invests.