Sacramento County (Calif.) Employees' Retirement System invested $35 million in a long/short equity hedge fund managed by Lakewood Capital Management, confirmed Scott Chan, chief investment officer.
It is the $7.2 billion pension fund's first long/short equity direct hedge fund investment. The plan has about $560 million invested in hedge funds, including about $150 million in direct investments.
Alternatives consultant Cliffwater assisted.
Separately, the pension fund returned 13.2% for the fiscal year ended June 30, topping the policy benchmark return of 10.9%. Opportunistic investments had the highest return at 22.6%, followed by domestic equity, 21.7%; international equity, 16.3%; private equity, 13.7%; hedge funds, 13.2%; real estate, 11%; fixed income, 1.1%; and commodities, -5.5%.
Also, Mr. Chan said the board is expected to hire an opportunistic credit manager to run $140 million at the Sept. 18 board meeting.
