New York State Insurance Fund, New York, hired LSV Asset Management to run a large-cap value equity portfolio for the $7 billion non-profit state workers compensation insurance carrier, pending contract negotiations, said Anne Formel, spokeswoman. The asset size has not been determined.
Separately, the fund will search for additional managers to handle a new equity allocation carved out of its $1.4 billion cash surplus, according to a source close to the fund. The source said the new equity percentage is 50% of the fund's cash reserve, and the fund will search for additional money managers to handle the increase, probably in the first or second quarter, although portfolio sizes and asset classes have not been determined. The surplus had been invested mostly in fixed income. Gifford Fong Associates is assisting.
Ms. Formel could not confirm that there will be searches and declined to say what percentage of the cash reserve will be allocated to equity. She said the fund set aside up to $500 million to invest in equity two years ago, its first stock allocation, and it is "nowhere near" filling its original equity allocation.