The Fairfax County Police Officers Retirement System is now bumping up its allocations to the sector.

The $1.4 billion Fairfax County Police Officers Retirement System did well last year on its investments in Morgan Creek Digital Fund III. The move paid off, allowing the pension fund to report good gains last year. Unsurprisingly, in April, the fund approved additional investments in the crypto and blockchain space. (Chief Investment Officer)

Growth story

Blockchain technology and bitcoin fund Morgan Creek Digital Fund III has 25% to 30% of its exposure to digital currencies including bitcoin.

Katherine Molnar, chief investment officer at the Fairfax County Police Officers Retirement System, commented on the fund’s maiden crypto investment in Morgan Creek: “We really thought of it as a huge growth story.”

“It was not our intention necessarily to make a direct play on bitcoin,” Molnar told CIO. “In fact, it wasn’t even to make a play on cryptocurrencies more broadly, but rather we were really trying to invest in the underlying blockchain technology infrastructure itself.”

Another country pension, the Fairfax County Employees’ Retirement System, also took a bet on Morgan Creek. Chief investment officer also said Morgan Creek had proved lucrative and had “good fee arrangements” for the fund.

Fresh allocations

Fairfax County Police Officers Retirement System, in April, approved an additional tranche of $16 million (1%) to invest in Morgan Creek

It also green-lighted a similar amount of $16 million to Blockchain Capital, the San Francisco-based venture capital firm that was established in 2013 to invest in the emerging blockchain technology industry.

Both Katherine Molnar and Andrew Spellar will speak at the 2021 CIO Symposium on Wednesday at 11 a.m. EDT.

They will discuss the above investments as well as other alternatives, particularly those that are completely uncorrelated to the markets.

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