Why Future Fund is keeping faith in hedgies

Amid widespread wariness over hedge funds after years of underperformance, some asset owners are daring to be contrarians. Korea’s $442 billion National Pension Service, for instance, made its first foray via a fund-of-hedge-funds structure this year. It announced in July an allocation of up to $500 million, or 0.2% of its assets, to two managers, with investments slated to be made next year. Australia’s $106 billion Future Fund has also remained bullish towards hedge funds and …