Arkansas Public Employees Retirement System, Little Rock, hired Lombardia Capital Partners to run $100 million in small-cap value equities and AQR Capital Management and Newton Capital Management to each run $50 million in a global tactical asset allocation strategy.
The small-cap equities mandate will be funded from $100 million returned by the system’s longtime small-cap manager, Westwood Management, according to minutes from the retirement system’s July 20 board meeting. Ryan Ball, vice president of Callan Associates, consultant to the retirement system, said at the meeting that Westwood “reached an asset point where they could no longer take in money and still invest effectively.” Westwood ran $219.2 million in smidcap equities for the system as of June 30, 2010, according to the system’s latest annual report.
Robeco Investment Management, DePrince Race & Zollo and Victory Capital Management were also considered for the small-cap mandate.
The GTAA allocation will be funded from liquidating a portfolio run by UBS Global Asset Management in the same style, and from assets managed by Invesco, according to the retirement system. The current size of the two mandates could not be learned; according to the system’s latest annual report, UBS ran $43.3 million in GTAA; Invesco ran $263.1 million in core real estate and global REITs and $191.5 million in value equities as of June 30, 2010.
Gail H. Stone, executive director of the $5.3 billion system, did not return calls seeking comment.