Carol McFate put in a lot of time in corporate and insurance company treasury roles before accepting the CIO job at Xerox Corp. in late 2006. There she has shepherded the now $8 billion portfolio back from its outsourced solution, remaking the fund with two broad goals in mind: generating returns and matching liabilities.
On the shape of the portfolio
We think of our portfolio in two parts. Theres the hedging piece, which is the long-duration fixed income, and the returns-seeking piece.
On what hedge funds are up to
You see the hedge fund community marketing like crazy to get access to defined contribution plans, which I think could be a very steep hill to get up.
On shedding managers
Weve turned over some managers, particularly on the 401(k) side, because some of those folks didnt learn much from the crisis.