San Diego County Employees' Retirement Association invested $50 million in the Barclays Global Investors Multi-Strategy Fund as part of the association's $1.5 billion "alpha engine," said David J. Deutsch, CIO of the $7.7 billion pension fund. The alpha engine is an in-house fund of funds that represents the plan's entire domestic large-cap equity exposure, he said. Association officials are searching for another manager to run a $50 million multistrategy portfolio, Mr. Deutsch said.
Some international and fixed-income exposure also will be added to the engine, but amounts won't be decided until the first quarter 2007, Mr. Deutsch said.
Funding for the new hires will come from cash.
Also, the board allocated $50 million to the Golden Tree Asset Management Credit Opportunities Fund. The investment is part of the fund's ongoing restructuring of its $400 million high-yield fixed-income portfolio.
The board also committed $25 million to California Smart Growth Fund IV, an urban redevelopment fund run by Pacific Coast Capital Partners, and $10 million to Coller International Partners V. It terminated a $280 million absolute return separate account with Bridgewater, reallocating $150 million to Bridgewater's Pure Alpha II hedge fund and $120 million to a low-volatility absolute-return manager that has not yet been selected. The board also put $150 million in an absolute-return strategy run by Western Asset Management.