Montana board assigns $113 million to private equity, real estate, timber

Montana Board of Investments, Helena, committed $68 million to three real estate and timber funds and another $45 million to three private equity funds since its May board meeting, according to documents prepared for the board's Aug. 21-22 meeting.

It committed $30 million to ORM Timber Fund III, a timber fund managed by Olympic Resource Management; $25 million to Stockbridge Value Fund, a value-added real estate fund managed by Stockbridge Capital Group; and $13 million to ABR Chesapeake Fund IV, a value-added real estate fund managed by Alex. Brown Realty.

It also committed $20 million to Tenex Capital Partners SG, a buyout fund; $15 million to Catalyst Fund IV, a distressed debt fund managed by Catalyst Investments; and $10 million to Dover Street VIII, a secondary fund run by HarbourVest Partners.

Separately, four active domestic large-cap equity managers were terminated as a result of the board changing weightings in May and moving to more passive large-cap strategies: Barrow, Hanley, Mewhinney & Strauss, which managed $192 million; Columbus Circle Investors, $147 million; Rainier Investment Management, $145 million; and Quantitative Management Associates, $121 million. The board put the assets into the BlackRock (BLK) S&P 500 index.

Also, AllianceBernstein (AB) was placed on watch for performance for its $88 million international large-cap equity portfolio. Jonathan Freedman, AllianceBernstein spokesman, did not return a telephone call for comment.

The board oversees a total of $7.8 billion in retirement assets from nine separate pension funds.