LACERS redeems investment in Knight Vinke absolute-return fund

Los Angeles City Employees' Retirement System is redeeming its $46 million investment in absolute-return fund Knight Vinke Institutional Partners II because of performance and organizational issues, according to the recently released minutes from the board's Sept. 25 meeting and other board documents.

Eric Knight, chief investment officer and CEO at Knight Vinke Asset Management, could not be reached by press time.

Separately, the $11.2 billion pension fund is considering whether to add an economically targeted investment program, according to minutes from the meeting. The board directed general investment consultant Wilshire Associates and private equity consultant Hamilton Lane to present their input at an unspecified future date “to be followed by a staff report with a proposed implementation process,” the minutes state.

The pension fund's board decided to look into adding the new program as a result of a memorandum issued by Los Angeles Mayor Antonio Villaraigosa asking the board to consider economically targeted investments.

LACERS officials did not respond to questions by press time.