New Mexico Educational Retirement Board, Santa Fe, hired GAM Trading to manage $150 million in an absolute-return portfolio, said Bob Jacksha, chief investment officer for the $8.7 billion fund.
GAM replaces Austin Capital and Deutsche Bank’s Topiary hedge fund of funds; it could not be learned by press time how much each ran. Austin Capital was terminated after the fund lost money from New Mexico in investments tied to Bernard L. Madoff Investment Securities. In June, the National Education Association of New Mexico, a state teachers union, sued Austin Capital on behalf of the board and the $13.43 billion New Mexico State Investment Council, Santa Fe, claiming Austin did not perform due diligence when it invested with Tremont Partners, which invested with Mr. Madoff’s firm.
Deutsche Bank is getting out of the hedge fund-of-funds business, Mr. Jacksha said.
Separately, the board will interview finalists NEPC, Meketa Investment Group and Sun Mountain Capital, in the board’s search for a private equity consultant. The board decided to interview the three finalists at a meeting to be set sometime in May, with a selection expected at the same meeting.
The board in June terminated former private equity consultant Aldus Equity Partners and dropped a $75 million private equity co-investment commitment with the firm in response to pay-to-play allegations against Aldus in connection with investments of the $129.4 billion New York State Common Retirement Fund, Albany.
