Sweden’s public pension system makes its first hedge fund investments

The $2.5 billion Seventh Swedish National Pension Fund, or "AP7", which is part of the Swedish national pension fund system, has agreed to allocate $48 million to K2 Advisors, a New York-based hedge fund of funds. K2 says it is the first hedge fund investment by the Swedish public pension fund system.

K2’s aggregate risk reporting ability and its ability to neutralize individual fund long positions in securities prohibited by AP7's ethical investment rules won it the mandate, says Kelsey Biggers, head of risk management at the New York-based fund, which has over $1 billion in assets under management.

Biggers says K2 was selected from a field of 127. "AP7 is kind of like the Calpers of Sweden and Europe," Biggers said. "It's one of these early adopter type of funds that is watched closely in