LACERS hires 2 small-cap managers, commits to debt fund

Los Angeles City Employees' Retirement System selected two managers for active non-U.S. small-cap core equities: AQR Capital Management to run about $297 million and Oberweis Asset Management for $33 million, according to recently released board meeting minutes.

The $12 billion pension fund is filling a new allocation adopted Jan. 24, 2012.

The pension fund also committed up to $30 million to American Securities Opportunities Management's American Securities Opportunities Fund III, a distressed-debt fund.

The fund has a fundraising target of $750 million and is expected to make debt investments ranging from $20 million to $100 million primarily in North America, with up to 20% outside North America over a five-year period.

The pension fund made a $20 million commitment to American Securities' last fund, American Securities Opportunities Fund II.

The commitment was made by the pension fund's private equity consultant, Hamilton Lane, under its discretionary mandate. Staff concurred with the commitment.

LACERS also extended Wilshire Associates' contract as general investment consultant for three years ending Dec. 31, 2016.

In addition, the pension fund selected Courtland Partners, ORG Portfolio Management and Townsend Holdings as the semifinalists for its real estate consultant RFP launched Jan. 22, 2013. Courtland Partners is the incumbent. Its contract is set to expire April 30, 2014. Further information was unavailable by press time.