New York State Teachers' Retirement System, Albany, hired active international equity managers Mercator Asset Management, Harris Associates, Causeway Capital Management, Artisan Partners and Arnhold & S. Bleichroeder Advisers to run about $266 million each. Funding came from terminating active international managers American Express Asset Management and Putnam Institutional, which managed $500 million each, and Lazard Asset Management, which ran $330 million, because the $73 billion system wanted better performance and to achieve more alpha, said John Cardillo, spokesman. Spokesmen at all three firms declined to comment. The new managers' styles will be less dependent on a benchmark and will be more actively managed than they were under the previous managers, Mr. Cardillo said.
Also, Alliance Capital Management, which ran $200 million in active domestic large-cap equities, was terminated for performance, Mr. Cardillo said. The money will be invested in an internally managed S&P 1500 index fund. John Meyers, Alliance spokesman, declined comment.