San Francisco City and County Employees Retirement System staff will report back to trustees May 29 on whether higher-alpha-generating strategies can be achieved with hedge funds, said Carl Wilberg, senior investment officer at the $11.6 billion pension fund. Trustees felt that a March report exploring options for shifting 4% or 5% of total assets into hedge funds failed to forecast sufficient alpha.
Separately, trustees selected Nicholas-Applegate Capital Management to run $235 million in international equity. Funding comes from terminating a $470 million international core equity portfolio handled by Oechsle International Advisors. Oechsle will run the balance in a concentrated international equity portfolio of 25-45 stocks. The search was run through InvestorForces online search engine; the firms recent spin-off, Angeles Investment Advisors, advised the system.