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Arkansas Public Employees terminates Lombardia Capital small-cap portfolio

Arkansas Public Employees Retirement System, Little Rock, terminated Lombardia Capital Partners as a domestic small-cap equity manager because of performance, said Carlos Borromeo, chief investment officer for the $7.6 billion pension fund, in an email.

Lombardia's allocation, roughly $162 million, will temporarily be parked with Mellon Capital Management in a small-cap value index fund.

A search for a new domestic small-cap value equity manager is currently underway.

There is no timeline for a hiring decision, which is being conducted by investment consultant Callan Associates.

A Lombardia official could not immediately be reached for comment.