Searches and Hires

Louisiana Teachers on lookout for large-cap value equity managers

Pension fund also rehires AllianceBernstein for global high-yield portfolio

Louisiana Teachers' Retirement System, Baton Rouge, is searching for active domestic large-cap value equity managers to run a total of about $1.2 billion, said Dana Brown, director of public markets.

The $20 billion pension fund issued a solicitation for proposals because of the pending contract expirations of current managers LSV Asset Management and Macquarie Asset Management. LSV currently runs slightly more than $600 million, while MacQuarie runs slightly less than that amount. How the portfolios will be split has yet to be determined. Both managers are invited to rebid.

The SFP is available on the pension fund's website. Proposals are due at 4:30 p.m. CDT on July 6. Finalist interviews are scheduled for Sept. 6, with a decision expected shortly thereafter.

Separately, the pension fund rehired AllianceBernstein (AB) to run an active global high-yield portfolio of about $525 million. The pension fund had issued an SFP in April, and the board decided at its meeting Thursday to eschew finalist presentations and rehire the incumbent manager.

Also, the pension fund rehired Mesirow Financial to run a $400 million active domestic small-cap value equity portfolio. The pension fund had issued an SFP in March. Barrow, Hanley, Mewhinney & Strauss and DePrince, Race & Zollo were the other finalists.

Investment consultant Aon Hewitt Investment Consulting assists with all manager searches.

Additionally, the pension fund committed up to $75 million to Apollo Hybrid Value Fund, a private equity and credit fund managed by Apollo Global Management. The pension fund previously committed up to $125 million to Apollo Investment Fund IX in 2017.