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Chicago Municipal Employees invests $100 million with 2 hedge fund managers

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.