Ohio Public Employees Retirement System, Columbus, hired BlueBay Asset Management to run $840 million in active emerging markets debt, according to March 19 board meeting notes provided by spokesman Michael Pramik.
The hiring was the result of Ohio PERS increasing its emerging markets debt target to 6% from 4%. BlueBay was hired from a shortlist provided by NEPC, the fund's consultant.
Ohio PERS, which includes $73.1 billion in defined benefit plan assets plans to hire a second manager within the next couple months to run about the same amount.
Funding for the emerging markets debt increase comes from reductions in the targets to domestic high-yield fixed income to 3% from 4.5% and global high-yield fixed income to 1% from 1.5%. No managers were terminated.
Separately, the retirement system allocated $250 million to four hedge funds in which the fund already invests.
An additional $80 million went to KLS Diversified Fund, managed by KLS Diversified Asset Management. The retirement system had previously invested $120 million in the fund, which employs a relative value strategy, in November 2012.
Ohio PERS invested an additional $75 million in credit-oriented hedge fund Canyon Value Realization Fund. The previous investment to Canyon Capital Advisors of $90 million was made in March 2012.
Another $50 million was also invested in the BHR Master Fund, an opportunistic, value-oriented, event-driven hedge fund managed by BHR Capital; the previous investment of $50 million was made in February.
The retirement system also invested $45 million in CQS Diversified Fund, a credit-oriented multistrategy hedge fund, bringing the total investment to $145 million.
Cliffwater assisted with the hedge fund investments.
