Louisiana State Employees' Retirement System, Baton Rouge, allocated up to $450 million total to two managers, said Robert W. Beale, chief investment officer, in an email.
The $10.7 billion pension fund hired AQR Capital Management to manage about $375 million in a risk-parity strategy. Funding will come from a reduction to the pension fund's existing risk-parity manager, Bridgewater Associates, bringing its new allocation to roughly $375 million as well. Bridgewater has performed well and the portfolio has grown "substantially," Mr. Beale wrote. AQR's addition is intended to help "control manager concentration, increase expected return and maximize asset efficiency," he said.
Additionally, in private equity, the pension fund committed up to $75 million to the GTCR Fund XII. The pension fund previously committed to predecessor fund GTCR Fund XI.
As of March 31, the pension fund had a 14% target to private equity and 7% target to risk parity.