Louisiana Sheriffs' Pension & Relief Fund, Baton Rouge, will likely hire in October its first opportunistic credit manager to run about $30 million, said Osey “Skip” McGee Jr., executive director.
The $2.3 billion pension fund originally conducted an invitation-only search for a third hedge fund-of-funds manager to join Blackstone Group and Corbin Capital Partners, which currently run $48 million and $54 million, respectively.
Investment consultant Russell Investments and staff decided after receiving proposals that the pension fund had enough diversity in hedge fund exposure among the two managers and will instead allocate funds to opportunistic credit.
Three finalists will make presentations to the pension fund's investment committee, likely in the first half of October. Mr. McGee would not name the finalists.
Funding will come from cash and a reduction in the pension fund's core fixed-income allocation, which currently stands at about 28%, Mr. McGee said. No managers will be terminated.