Virginia Tech Foundation, Blacksburg, Va., will consider asset allocation changes at its early December meeting, said John Cusimano, director of investments and debt management at the $500 million fund. Trustees will be looking into increasing alternative investments to 15% of total assets from 8%. Consultant Cambridge Associates also will propose an allocation to domestic core-plus fixed income, Mr. Cusimano said.
Separately, trustees replaced Sovran Capital with Agincourt Capital Management for a $35 million intermediate domestic bond portfolio. Management will be a change in name only, Mr. Cusimano said, because the portfolio managers are the group that left Sovran to form Agincourt last month. The group’s departure and a reduction in fees prompted the switch, he said. While Sovran does not comment specifically on client relationships, a spokesman for the firm said a number of actions have been taken, including the appointment of Kirk Hartman as president of Sovran.
This role is in addition to his duties as chief investment officer for fixed income for the Bank of America Asset Management Group. He will lead a full team of institutional investment professionals, including both portfolio managers and client service providers who were immediately brought in when the other employees resigned. The spokesman also said that Bank of America was holding discussions with Sovran employees and officers to establish a joint venture arrangement to continue serving clients’ needs. Bank of America officials said they did not break off the talks. "The Bank of America officers involved in those discussions were extremely disappointed to learn the morning of September 22nd that these former Sovran employees chose to reject this course of action and resigned without notice,’’ the spokesman said.
