Navy-Marine Corps Relief Fund, Arlington, Va., hired Numeric Investors to run a $10 million market-neutral strategy with a value tilt and an S&P 500 futures overlay. This increases to $40 million the $215 million funds total exposure to long-short or absolute-return strategies. Funding for the new investment comes from peeling back exposure to value equity strategies and by getting out of a $4.2 million equitized market-neutral partnership with Numeric.
Additionally, the fund has increased its equity exposure in its market-neutral strategy to 75% from 50%, a level it had held since Jan. 3. We follow a tactical asset allocation model, and our TAA model has increased our equity exposure, said James L. Koltes, chairman of the asset allocation committee.