Massachusetts Pension Reserves Investment Management Board, Boston, on Oct. 5 will recommend a fifth hedge fund-of-funds manager to run $325 million, replacing Silver Creek Partners. The $32.6 billion system broke off talks with Silver Creek because of differences over fees. Negotiations with the other four firms were completed successfully.
Mass PRIM will also review its currency overlay strategy to see if that coverage should be expanded or trimmed, said CIO Jerrold Mitchell. Currently, Pareto Partners hedges 25% of the fund's international equity exposure.
Separately, the board voted today to search for a manager to run $700 million in active domestic large-cap equities. The money has been parked in an S&P 500 index fund with State Street Global Advisors since the system terminated the portfolio's previous manager, J.P. Morgan Fleming, for organizational and performance reasons in December 2002. Further details were not available by press time.