New Orleans City Employees Retirement System terminated Mount Lucas Management because of performance of its MLM Index Managed Futures fund, in which the system had a $1.5 million investment, said Jerry Davis, board chairman. Raymond E. Ix, senior vice president of Mount Lucas, wouldn't comment.
Officials of the $390 million pension plan will probably use the money to help fund a $5 million to $10 million active international growth equity portfolio, Mr. Davis said. The board has called a special meeting for Aug. 24 to interview managers for the portfolio. Mr. Davis did not name any of the firms, noting that a list has not been completed. Morgan Stanley is assisting with the shortlist search.
Separately, the board is considering investing an undetermined amount in Silver Creek II, a low-volatility hedge fund of funds. The plan has about $2 million invested in the first Silver Creek fund and system officials have been satisfied with performance, Mr. Davis said.