Oklahoma Teachers’ Retirement System, Oklahoma City, terminated Cove Street Capital as an active domestic small-cap value equity manager, said Tom Spencer, executive director of the $15 billion pension fund, in an email.
Mr. Spencer wrote that the pension fund board decided at its May 24 meeting to reduce the overall number of small-cap equity managers to five from six as a structural decision. Cove Street was also the only firm of the five firms hired in 2013 with single-digit annualized returns, Mr. Spencer wrote.
As of April 30, the pension fund had just under $130 million invested in the strategy, which was put “on alert” for performance last month.
A Cove Street official could not immediately be reached for comment.