The commitment represents 5% of the $1.6 billion plan’s overall portfolio and is the plan’s first hedge fund-of-funds allocation.
Plan officials liked Prisma’s mix of hedge fund strategies, the thoroughness of the firm’s risk analysis and the strength of its returns, Mr. Hutt said in a telephone interview.
The move is part of the plan’s revised asset allocation, which reduced its core fixed-income allocation by 4.5 percentage points to 17%. Earlier this year, core fixed-income managers Loomis Sayles and Neuberger Berman, which ran $77 million each, and NCM Capital Management, which ran $31 million, were terminated to fund the hedge fund-of-funds allocation, Mr. Hutt said.
Consultant Summit Strategies assisted.