CalPERS staff recommended that Analytic Investors, First Quadrant, Goldman Sachs Asset Management, Quantitative Management Associates and State Street Global Advisors be included in a pre-approved list of U.S. equity long-short managers. A dollar allocation to the area has not been set but is expected to be in the billions of dollars. Staff of the $225.3 billion California Public Employees' Retirement System, Sacramento, believes it can obtain better returns with higher information ratios by relaxing the long-only constraint.
Separately, staff recommending renewing the contracts of the fund's currency overlay managers, Pareto Partners and SSgA, for a period of one year.
Consultant Wilshire Associates supports both recommendations, which will be considered at CalPERS' Dec. 18 investment committee meeting.