Orange County (Calif.) Employees Retirement System has short lists for a small-cap growth manager and a real estate manager. Real estate candidates are Allegis; INVESCO; RREEF; and PM Realty. Finalists for a $75 million small-cap growth portfolio are TCW Group; John McStay; and Geewax, Terker, according to Farouki Majeed, the $3.9 billion funds investment officer. The board is expected to make a decision in February. Separately, the board at its Jan. 11 meeting took Schroder Capital off the watch list because of improving performance, Mr. Majeed said. Schroder manages a $233 million international equity portfolio with an EAFE mandate. The board also approved the transfer of between $10 million and $12 million from its EAFE portfolio to an emerging market fund that is co-managed by Capital Guardian and Schroder. STI Capital Management, which manages a $220 million large-cap growth portfolio, will remain on the watch list, where it was placed when the portfolio manager left the firm. "Were watching to see how they are managing the portfolio to see whether we notice any significant changes, he said.