Philadelphia Public Employees Retirement System hired Arden Asset Management to run $50 million and Allianz Hedge Fund Partners to handle $30 million, both in non-directional, long-short equity hedge funds of funds. Also, Mesirow Advanced Strategies and Goldman Sachs Asset Management were hired to manage $20 million each in directional hedge funds of funds, said Brian Glanz, investment officer-public equities and hedge funds.
Also, the $4 billion plan's investment staff is analyzing 12 emerging hedge fund-of-funds managers to select a firm or firms to manage $9 million and hopes to present five or six finalists to the board sometime this fall. Selection and funding are expected by the beginning of next year, said Mr. Glanz. The candidates came from a shortlist compiled by CRA RogersCasey.
The moves are part of the system's new program allocating 6.18% of total assets to hedge funds overall, said Mr. Glanz. Of that, 70% is targeted for hedge funds of funds and 30% to direct hedge fund investments. Staff will wait to begin investing the $75 million earmarked for direct hedge fund investments until after completing the hedge funds-of-funds investments. Mesirow already has been hired to run $50 million in a non-directional hedge fund of funds.
Alan Dorsey, director of alternatives, CRA RogersCasey, is assisting with hedge fund manager selection.