Chicago Municipal Employees’ Annuity & Benefit Fund made direct hedge fund investments of $50 million each with Neuberger Berman and Parametric Portfolio Associates, according to recently released board meeting minutes.
The $4.3 billion pension fund did not identify the strategies; the pension fund issued an RFP in October for two managers to run a total of $100 million in separate accounts for a “hedged equity portfolio mandate,” according to the RFP.
The nature of the managers’ funds was not disclosed in the minutes; Goldman Sachs Asset Management and Gateway Investment Advisers were also finalists.
The pension plan’s hedge fund target is 10%; as of Feb. 28, the actual allocation to hedge funds was 11.1%.
Investment consultant Marquette Associates assisted.
Juan Lopez Jr., investment officer, and Stacey Ruffalo, coordinator of special projects, could not be immediately reached to provide further information.