University of Oklahoma Foundation, Norman, hired Wells Capital to run $26 million in active domestic small-cap value equities and Farallon Capital Management to run $15 million in a hedge fund of funds, confirmed Ron Burton, president and CEO.
Funding for the small-cap portfolio came from terminating Dalton Greiner Hartman, Maher, which ran a similar portfolio, for performance, Mr. Burton said. Ellwood Associates assisted with the invitation-only searches. A woman who answered the phone at Dalton said the firms policy is not to comment.
Farallon replaces Steel Partners, which ran $11 million in a hedge fund of funds; the remainder came from cash. Steel Partners will manage a $20 million absolute-return portfolio, a new allocation. Officials of the $600 million fund plan to hire two more absolute-return managers to run $20 million each within the next few months. Ellwood will assist with the invitation-only searches. Funding for the absolute-return portfolios will come primarily from general reductions to existing domestic managers, who run a total of about $210 million.
The foundation currently has about $27 million invested in hedge funds of funds with a target of about $45 million.