Cook County Retirement Board hired Blackstone Alternative Asset Management, Diversified Global Asset Management and The Rock Creek Group to run three hedge fund-of-funds portfolios comprising 9% of assets in the two plans of Cook County Annuity & Benefit Fund, according to an e-mail from the two pension funds.
As of Sept. 30, the county Employees' & Officers' Annuity & Benefit Fund had $6.85 billion in assets; the Forest Preserve District Employees' Annuity & Benefit Fund had $158 million. Both funds are based in Chicago.
An RFP was issued in September for the retirement board's first fund-of-funds managers to run about $692 million for the two funds. It was expected the employees and officers fund would contribute about $675 million and the forest preserve employees fund about $17 million.
Blackstone was selected as the sole manager for the forest preserve fund's 9% hedge fund allocation, according to an e-mail from the office.
Industry sources said the three managers were selected to run core and satellite portfolios, with Blackstone receiving the largest mandate, which is believed to be about $500 million.
Specific allocations to individual managers have not been determined.
Consultant Callan Associates assisted.
Daniel R. Degnan, executive director, and Nickol Hackett, chief investment officer, could not be reached for further details.