Orange County Employees Retirement System, Santa Ana, Calif., hired Capital Guardian Trust to manage $100 million in active domestic large-cap value equities. CapGuardian was selected over Equinox Capital and Wellington Management, said Farouki Majeed, chief investment officer for the $4.8 billion system. Funding comes from decreasing incumbent Delaware Investment’s portfolio, leaving it with $100 million. The system’s overall private equity allocation is $250 million.
The system’s board also voted to sell six private equity investments, which have a combined value of about $35 million, that the fund has held since the mid-1990s.
"The partnerships had relatively poor performance, and staff analysis indicated that by selling and redeploying the capital with more successful partnership ventures, OCERS could earn a better return,” Mr. Majeed said. He declined to provide further information about those investments. The assets will be allocated to existing private equity managers Adams Street Partners and HarbourVest, he said.
