San Bernardino (Calif.) County Employees' Retirement Association will issue an RFP in the second week of February for a manager to run a new $160 million hedge fund portfolio, a new asset class for the $3.2 billion fund, said Don Pierce, investment officer. Funding will come from fixed-income reductions; no managers will be terminated, he said. A selection could be made in July.
Separately, the system named AIG, Pareto Partners and TCW as finalists to run a $100 million high-yield portfolio, and Post Advisory Group and Seix Investment Advisors as finalists for a $150 million high-yield portfolio, Mr. Pierce said. Funding for both will come from reducing the plan's $813 million core bond and $1.6 billion equity portfolios. No managers are being terminated, he added. Manager selections are expected Feb. 9.