Richmond (Va.) Retirement System hired Westwood Holdings Group to run $16 million in an active domestic smidcap value equity fund, said Philip R. Langham, executive director of the $456 million system. Funding comes from terminating the portfolios previous managers, Ariel and TCW, which ran about $8.5 million each in smidcap portfolios, Mr. Langham said. Were going to consolidate our smidcap value assets into one manager, Mr. Langham said, adding that performance was an issue.
We dont comment on client-related matters, said Michael Utley, a TCW spokesman. Mellody Hobson, Ariel president, said: Were sorry to see them go at a time when our portfolio is so cheap and so well positioned.
Separately, the system committed $7.5 million to Lexington Partners, its first investment in private equity, Mr. Langham said. Funding for the commitment came from a rebalancing of fixed-income assets, Mr. Langham said. System officials in April decided to move up to 5% of total assets to private equity, and this is just a portion of that, Mr. Langham said.
Our intention is to lower risk while improving investment returns, he added.