New York State Teachers' Retirement System, Albany, hired three...

New York State Teachers’ Retirement System, Albany, hired three domestic large-cap equity managers to actively run up to $500 million each, said George Philip, CIO for the $80 billion fund. The managers are Lincoln Capital, Montag & Caldwell and Iridian Asset Management. The investment committee interviewed two other finalists — MacKay-Shields and Pacific Financial Research. Mercer assisted. The $1.5 billion allocation will come from cuts of $750 million each to Ark Asset Management and Sanford C. Bernstein, which remain on the watch list. The two had managed about $2 billion each and will make presentations to the investment committee at its April meeting, Mr. Philip said. Separately, domestic small-cap equity manager SG Cowen was terminated for performance reasons, said Mr. Philip; it had managed $184.8 million. A spokesman for SG Cowen did not comment by deadline. The fund also increased by $180 million its allocation to fund of funds Progress Investment Management. Progress now will oversee $380 million, all in small-cap equities.