PROVIDENCE, R.I. - Trustees of the $4.1 billion Rhode Island Retirement Systems rescinded the hiring of Penn Capital Management, less than three weeks after allocating $15 million to Penn as part of a $60 million emerging manager program.
Barbara Schoenfeld, deputy treasurer/general counsel, declined to say why Penn was terminated. The decision was mutually agreed upon and discussed in closed session, she said.
Penn Capital already had begun to invest on behalf of the fund, which eliminates the possibility the decision to terminate was related to fees or another contract issue.
Richard Hocker, managing director with Penn Capital, corroborated Rhode Island's account. He declined to elaborate.
William Bensur, a consultant at Wilshire Associates, who assisted with the search, implied Penn lacked the administrative capability to manage a relationship with a large institutional investor.
Penn's allocation will be divided equally among three other emerging managers hired at the same time - HLM Management, Taplin, Canida & Habacht and ValueQuest.
SACRAMENTO, Calif. - Officials of the $97 billion California Public Employees' Retirement System are exploring what they say are increased opportunities in international alternative investments and alternative emerging investments.
The pension fund has modified the contracts of its alternative investment consultants to fund additional exploration of the opportunities.
The fund also announced four new alternative investment commitments: $25 million to Informational Technology Ventures; $75 million to Lombard/Pacific Rim Partners; $20 million to OCM Opportunities Fund; and $100 million to Thomas H. Lee Equity Fund III.
SANTA ANA, Calif. - A plan that would have demoted Mary-Jean Hackwood to portfolio manager (from administrator) at the $2.9 billion Orange County Employees Retirement System has fallen apart.
Trustees voted 6-3 to terminate Ms. Hackwood as an employee of the system. But the vote was not enough to override Ms. Hackwood's contract; that requires a supermajority vote of 7-2, said Thomas Lightvoet, board chairman.
The board has turned the matter over to county counsel.
MADISON, Wis. - Marshall Burkes, former executive director of the State of Wisconsin Investment Board, and attorneys for the board settled a lawsuit for about $450,000 that had been filed by Mr. Burkes.
The suit was filed in 1989 following Mr. Burkes' termination. He claimed he was dismissed for questioning the propriety of some in-state private placements made by the board.