SACRAMENTO, Calif. — The $210.7 billion California Public Employees' Retirement System selected 16 external managers to be included in pre-approved lists of firms to run active domestic growth equities, international fixed income and real estate equity securities.
The equity managers are Goldman Sachs Asset Management, Jacobs Levy Equity Management, Marvin & Palmer, Turner Investment Partners and INTECH; the fixed-income managers are AllianceBernstein, BlackRock, Brandywine Asset Management, Mondrian Investment Partners, Morgan Stanley Investment Management and PIMCO; and the real estate managers are Citigroup Property Investors, European Investors, Morgan Stanley Investment Management, Presima and RREEF America. The fund will assign most of its $1 billion internally managed passive international real estate securities portfolio to the managers on the newly approved list, although details have not yet been approved.
CalPERS picked Adelante Capital Management to run a domestic real estate securities portfolio that will be permitted to short stocks. The size of the allocation was not disclosed. Further details are not available because the investment was approved in closed session, spokesman Brad Pacheco wrote in an e-mail to P&I Daily. The fund and the manager are still negotiating terms of the contract, he added. Pension Consulting Alliance is the consultant.
Separately, CalPERS invested $100 million in Ermitage Highbury Fund, a hedge fund of funds managed by Liberty Ermitage Asset Management Jersey; and $50 million each in Chatham Asset Leverage Loan Offshore Fund, which invests principally in senior secured floating-rate loans, and Tennenbaum Multi-Strategy Fund, which invests in various arbitrage and distressed debt strategies.
In private equities, CalPERS committed $100 million to Audax Mezzanine Fund II, a middle-market mezzanine fund; $75 million to Carlyle Asia Growth Partners III, which will take minority stakes in emerging companies in high-growth industries in China, India, Japan and South Korea; and $45 million to Clarus Lifesciences I, which will invest in biopharmaceutical and medical device markets. The Clarus fund closed last December, but CalPERS just disclosed the commitment.