Kentucky Retirement Systems, Frankfort, approved a new 5% allocation to absolute-return strategies, said CIO Adam Tosh.
Were going to start to work on this, but were going to take our time, he said, adding that he does not know how many managers could be hired.
The $11.5 billion funds investment committee has been considering the allocation for a while, Mr. Tosh said. He said committee members believe now is a good time to get into absolute-return strategies because they typically do well in an economic downturn and provide diversification and risk mitigation.
RV Kuhns will assist with any future searches.
Separately, the committee approved committing $50 million to buyout manager Bay Hills Capital. Alternatives consultant Strategic Investment Solutions assisted.