ST. LOUIS - Sisters of Mercy Health System hired Goldman Sachs Asset Management to oversee $710 million in a global tactical asset allocation overlay for its $795 million capital fund, said James Jaacks, chief financial officer. He said GSAM will maintain exposure and remove unintended risk for the programs' managers, which run portfolios including Russell 3000, Lehman Government/Credit and MSCI All Country World index (ex-U.S.) funds.
GSAM also will run $77 million of the global TAA program in a Russell 1000 index fund, he said. Funding came from a $44 million active domestic large-cap value equity portfolio that was terminated because the plan wanted a more neutral strategy, and from the reallocation of $33 million in S&P futures. The previous manager, which Mr. Jaacks would not identify, continues to manage a small-cap equity portfolio for the fund.
The fund also hired Frontier to manage $20 million in active domestic small-cap growth equities, also part of the global TAA program, Mr. Jaacks said. Funding came from terminating a $30 million active international equity portfolio; he would not identify the manager but said fund officials wanted to reduce international exposure.
Separately, the fund committed $24 million to a hedge fund run by Winston Capital Management and $20 million to a hedge fund run by Ramius Capital Group.
Cambridge advised on the hirings.
