New Mexico Public Employees Retirement Association, Santa Fe, committed $35 million to the Wexford Spectrum Fund, an opportunistic/global hedge fund, said Joelle Mevi, chief investment officer of the $11.6 billion system.
Funding comes from the redemption of a $78 million investment in Farallon Capital Institutional Partners, a multistrategy hedge fund. Ms. Mevi said the system is reviewing other hedge fund managers to invest the balance of the Farallon redemption.
Ms. Mevi said in an interview that the association’s board decided to redeem the Farallon investment because of portfolio manager departures that were “material to the investment of the hedge fund.”
She did not identify the portfolio managers who left Farallon, but investment consultants who asked not to be identified said she likely is referring to four Farallon value equity portfolio managers — managing members William Duhamel, Jason E. Moment, Ashish Pant and Richard Voon — who left in March. The departures have unnerved many of the consultants’ clients that are invested in Farallon Capital Institutional Partners and its sister fund, Farallon Capital Partners, since the value equities strategy used by both multistrategy flagship funds accounted for a significant portion of Farallon’s total assets.
The four formed Route One Investment Co. and launched a hedge fund with about $500 million under management, sources said.