Oklahoma Firefighters Pension & Retirement System, Oklahoma City, is searching for active core fixed-income and low-volatility hedge fund-of-funds managers to run $50 million to $70 million each, confirmed Troy Brown, director of consulting at The Bogdahn Group, consultant to the Bogdahn Group, consultant to the pension fund.
Funding for the core fixed-income search will come from reducing its $130 million passive domestic fixed-income allocation, which is run by State Street Global Advisors. Mr. Brown said the board was concerned about rising interest rates and decided to search for an active manager.
The low-volatility hedge fund-of-funds search is to potentially replace Private Advisors, which currently runs $140 million in the strategy. Private Advisors is invited to rebid. Mr. Brown said the $2.1 billion pension fund is looking to cut the allocation in half and has already put in a request with Private Advisors to redeem at least half of its investment. If the firm is rehired, the pension fund will keep about half the assets in the strategy. He added the board had “soured” on the strategy following the financial crisis, but is searching for potential alternative managers during the waiting period for redemption, expected to be completed by June.
The RFPs are available on the pension fund’s website. Proposals are due March 7. Finalists could be selected April 18, with potential hiring decisions May 16.