Rhode Island will redeem an estimated $585 million from hedge funds in the coming months, said General Treasurer Seth Magaziner.

Rhode Island's State Investment Commission unanimously voted to terminate its investment in seven hedge funds, in line with General Treasurer Seth Magaziner's initiative to minimize the state pension fund's exposure.

Rhode Island will redeem an estimated $585 million from hedge funds in the coming months, Magaziner said after the Oct. 27 meeting. He chairs the commission. He said the state will fully redeem positions with Ascend Capital, Brevan Howard, Brigade Capital Management, Emerging Sovereign Group (formerly Carlyle Group), Partner Fund Management, Samlyn Capital and Och-Ziff Capital Management.

Magaziner last month announced his "Back to Basics" plan to refocus Rhode Island's $7.7 billion retirement system on investments expected to provide growth, reduce volatility and strengthen retirement security. Magaziner's predecessor, Gina Raimondo, the current governor, had invested heavily in hedge funds.

Magaziner expects to complete a majority of the hedge fund redemptions by the end of the fiscal year.

The Rhode Island pension fund has returned 6.20% in calendar 2016, said Magaziner, beating its benchmark by 43 basis points.

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