New York State Teachers’ Retirement System, Albany, terminated Dresdner RCM Global Investors, which managed $190.5 million in domestic small-cap growth equities, for poor performance. The money will be transferred to an internally managed Russell 3000 index fund that now holds $32.8 billion. The $80 billion system put Lincoln Capital Management, which manages $324.4 million in domestic large-cap growth equities, on its watch list for performance, and it removed Iridian Asset Management, which manages $518.17 million in domestic large-cap value equities, from the watch list because its performance has improved.
Alexander B. Knowles, director of marketing at Lincoln, said: "We are a growth manager and like many growth managers we’ve been challenged by the recent market downturn and high volatility. However, we have had a nice rebound in April.” Joe Rusbarsky, senior managing director at Dresdner, did not return calls seeking comment.
The fund also renewed its contract for one year with general investment consultant Evaluation Associates.
In addition, Joseph Vet, chief investment securities officer, said the system doesn’t plan to invest in hedge funds because it doesn’t have the staff needed to oversee a meaningful allocation. It won’t use an outside hedge fund of funds because the fees are too high, he said.
