International Union of Operating Engineers and Participating Employers Central Pension Fund, Washington, terminated Strong Capital Management, which handled $126 million in active domestic small-cap growth equities, because the firm was named in an investigation by the New York attorney general into market timing, said Michael Fanning, CEO.
The $7.3 billion plan will park the money in a Russell 2000 Growth index portfolio with existing managers State Street Global Advisors or Barclays Global Investors, said John J. Szczur, director of investments. Plan officials will conduct an invitation-only search for a permanent replacement. Ennis Knupp will assist.
Larry Zuntz, managing director for institutional client services at Strong, did not return calls by press time seeking comment.