BOSTON Massachusetts Pension Reserves Investment Management board, Boston, terminated Goldman Sachs Asset Management from a $1.2 billion enhanced equity mandate Feb. 5 because of organizational changes at the firm, said CIO Stan Mavromates.
Staff at the $53.7 billion system told board members that GSAM had combined the team managing PRIM's money a long-only quantitative team led by co-CIO of equity Bob Jones with a quantitative hedge fund team led by GSAM's other co-CIO of equity, Mark Carhart.
PRIM decided to terminate GSAM after a visit to the money manager, designed to reassure PRIM about the stability of the team managing its money, was quickly followed by further personnel changes, Mr. Mavromates said.
The money will be moved to an SSgA S&P 500 index account pending a review of the structure of the system's domestic equity investments by general consultant Cliffwater at the next board meeting April 8.
The board also agreed to allow staff to consider whether PRIM should leverage its extensive contacts with general partners of private equity funds to consider co-investment opportunities.