Chicago Policemens Annuity & Benefit Fund is searching for private equity managers as part of implementing the $4 billion systems 10% opportunistic asset allocation, approved in January.
John J. Gallagher Jr., executive director, said RFPs are not being issued. Instead, the funds new CIO, Sam Kunz, is reviewing private equity managers and available opportunities with consultant Ennis Knupp.
Neither the sizes of the portfolios nor number of managers to be hired have been set. The funds board has invested $80 million of the $400 million opportunistic allocation evenly between hedge fund-of-funds managers Aetos Capital Management and K2 Advisors.
Finalist presentations could be made at the boards Aug. 26 investment committee meeting and hires possibly on Sept. 22, Mr. Gallagher said.
Separately, the board terminated active domestic midcap growth stock manager Piedra Capital, which ran $21 million, for organizational reasons and spotty performance, Mr. Gallagher said. The assets were moved to Piedmont Investment Advisors, bringing the total managed in active large-cap domestic equities for the police fund to $43 million.
S. Peter Hidalgo II, Piedra founder and CIO, said he found the termination unusual, since the strategy was up 260 basis points when we were fired. Mr. Hidalgo added that his son, Michael Hidalgo, who was senior vice president, client contact and compliance officer, resigned to pursue other interests. Michael Hidalgos duties have been assumed by others while the firm is in the final stages of hiring a replacement.