Fort Lauderdale (Fla.) Police & Fire Retirement System is switching its hedge funds-of-funds strategy to a traditional one from long/short equities, confirmed Fred Nesbitt, director of public information.
The $526 million pension fund decided at its Wednesday board meeting to exit long/short due to overall underperformance, according to Mr. Nesbitt. As a result, the system terminated K2 Advisors, which ran $23 million.
The pension fund's investment consultant, CAPTRUST Financial Advisors, is creating a shortlist of three hedge fund-of-fund managers to make presentations at the June 13 board meeting. The chosen manager will take over the portfolio.