Orange County Employees Retirement System, Santa Ana, Calif., will invest 2% of assets in commodities, said Shanta Chary, CIO of the $7.6 billion system. Commodities will be included in the funds real return portfolio, which had consisted solely of TIPS. Consultant Callan Associates will conduct an invitation-only search; the number of managers and type of strategy havent been determined. The search should take three months.
The board also hired Hancock Timber Resource Group to manage $100 million and RMK Timberland Group to manage $40 million. The timber hires also are part of the real return allocation.
Trustees also issued a search for at least one manager to run about $230 million in a well-diversified absolute-return hedge fund of funds and another to manage a new cash overlay. The searches had been approved in March.