Fairfax County Educational Employees Supplementary Retirement System, Springfield, Va., hired Dimensional Fund Advisors to handle $45 million in active small-cap value equities and Permal Group to run $25 million in a hedge fund-of-funds strategy, pending contract negotiations, said Alan Belstock, executive director of the $2 billion system.
DFA replaced BNY Mellon Asset Management, which ran the money in a small-cap index fund, Mr. Belstock said. Were perfectly happy with Mellon, but we thought the small-cap value allocation should be actively managed, he said. Funding for the hedge fund allocation will come from several portfolios but no managers will be terminated, he said.
The systems consultant, NEPC, assisted in the invitation-only searches.
The system has a 7.5% target allocation to hedge funds. Grosvenor Capital Management already runs $25 million in hedge funds of funds for the system.