International Paper Co. terminated Nicholas-Applegate as an active domestic small-cap growth equity manager, said Robert Hunkeler, vice president and director of investments. The firm was dropped because of performance and high turnover of senior investment professionals; also, there were too many stocks in the $24 million portfolio, Mr. Hunkeler said.
The money was divided among the $6.5 billion pension plan's remaining seven domestic small-cap equity managers: Arbor Capital Management, Artisan Partners and Provident Investment Counsel in small-cap growth; AXA Rosenberg and BGI in small-cap core; and Kestrel Investment Management and Shapiro Capital Management in small-cap value.
"We decided the remaining seven dwarfs will be just fine," Mr. Hunkeler said.
Susan Hunter, Nicholas-Applegate spokeswoman, did not return a call by press time for comment.