Wyoming Retirement System, Cheyenne, is searching for eight to 12 hedge fund managers to run a total of about $420 million, confirmed Douglas Kidd, senior investment officer.
The search is the final phase of the $7 billion pension fund’s multiyear restructuring of its equity and global fixed-income portfolios in an effort to protect against volatility.
Mr. Kidd said in a telephone interview that the pension fund is allocating 5.5% of the overall pension fund to long/short equity and 2.5% to credit, and is thinking about four to six managers for each, although that number is flexible depending on the proposals the pension fund receives. The fund is also considering event-driven strategies.
Funding will come from reducing existing equity and fixed-income portfolios, and no managers will be terminated, Mr. Kidd said.
The RFPs can be found on the website of NEPC, the pension fund's investment consultant. Wyoming is looking for managers specializing in credit, long/short equity and event-driven strategies. Proposals for all three RFPs are due at 2 p.m. MDT on Aug. 30. Mr. Kidd said he hopes managers will be selected and funded by the end of the year.