Orange County Employees' Retirement System, Santa Ana, Calif., hired Pilgrim Baxter to manage a $75 million small-cap value portfolio, said Raymond A. Fleming, the $4.2 billion system's administrator.
Funding will come from another, so far undetermined, equity manager. The hire is subject to contract negotiations.
The board also voted to hire State Street Bank as its new master custodian, also subject to contract talks. State Street replaces Bankers Trust. The other finalists were Bankers Trust and Bank of New York.
The fund also expects to hire a small-cap growth manager to run $75 million, Mr. Fleming said. The money will come from another equity manager, which has not yet been identified.