New York City Employees Retirement System terminated activist hedge fund manager Breeden Capital Management, which ran $133.2 million for the $36 billion system, according to information obtained from the city comptroller’s office under a public records request by Bloomberg News.
The system’s board voted via e-mail May 25 to terminate Breeden, according to information.
New York City Comptroller John Liu, the fund’s trustee, is reviewing the investments of the city’s five public employee retirement funds. The pensions have fired at least six money management companies.
“NYCERS has given notice to Breeden, in accordance with the terms of its investment agreement, to withdraw from the fund,” Lawrence Schloss, the city’s chief investment officer, said in an e-mail.
Cathy Hanson, a spokeswoman for Mr. Liu, declined further comment.
As of June 30, the city’s original $136.5 million investment with Breeden was down 2.3% since October 2008. The S&P 500 lost 2.5%. The pension fund has paid the firm $6.2 million in fees, according to the comptroller’s records.
The city’s withdrawal from Breeden Capital Management will take from 18 to 24 months, Mr. Schloss said. Breeden will remain a manager for the civil employees’ pension plan during that time, he said.
Victoria Weld, a spokeswoman for Breeden, declined to comment.
Mr. Liu has delayed naming fund managers fired by pension funds for as long as six months, saying “premature disclosure” would harm the value of plan assets.
Last month, Mr. Schloss declined to say whether Breeden had been terminated. Bloomberg News then filed a public records request with the city comptroller’s office.