New York City Teachers Retirement System, with $22.5 billion in assets, hired two active domestic small-cap equity managers to run $90 million each, according to Thaddeus McTigue, spokesman for the system. Ariel Capital and Capital Guardian will use value and core styles, respectively.
Separately, the $14.3 billion New York City Police Department Pension Fund hired four active domestic small-cap equity managers: Dalton Greiner to run $100 million in value; Mazama, $90 million in growth; and Daruma and Deutsche Asset, $45 million each in a core style.
Funding for these hirings will come from reducing the two systems Russell 3000 index funds. Barclays Global Investors runs $2.4 billion for the police fund, and Merrill Lynch, $2.2 billion; and BGI manages $7.4 billion for the teachers system, and Merrill, $2.65 billion. The amounts to be taken from each manager have not been determined.
The move to small-cap equities is the first for both funds.