The City of St. Louis Employees Retirement System will likely begin an invitation-only search after the board's Sept. 25 meeting for a manager to run roughly $26 million in a hedge fund of funds, said Mary Lou Mullen, employee benefits manager. On Monday, the board of the $550 million pension fund revised its investment policy to allow investment in hedge funds to increase diversification and to help boost returns. Aside from an 11% allocation to real estate, this will be the fund's first alternative investment. Funding may come from the plan's 21% fixed-income allocation, but no details have been determined, Ms. Mullen said.
Consultant Summit Strategies Group is assisting.