Hartford HealthCare, Hartford, Conn., has hired three managers to manage a total of $75 million on behalf of the hospital’s $2.45 billion in pension, endowment and insurance investments and has rebalanced its allocation within its investment portfolio, said David Holmgren, chief investment officer.
Pioneer Investment Management and Income Research & Management have been hired to manage in long-duration fixed-income strategies on behalf of the hospital. This is a new asset class for the pension fund. The pension fund will initially allocate $50 million total to the two managers and is looking to increase the allocation to $100 million in a year.
Pioneer will initially receive $35 million to manage. IR&M currently manages $75 million in an intermediate fixed-income strategy. Of that, $15 million from that strategy is being shifted into a long-duration strategy. IR&M will continue to manage the remaining $60 million of its allocation in intermediate fixed income.
Funding for the Pioneer allocation will come from traditional fixed income.
Hartford HealthCare’s search began in February. Investment consultant Mercer Hammond assisted in the search.
In addition, Oceanwood Capital Management was hired to manage $25 million in an event-driven hedge fund. Funding came from the termination of another manager. Mr. Holmgren declined to disclose the name of the terminated manager.
The search began in September. Investment consultant Aksia assisted in the search.
In addition, the hospital has increased its allocation to private equity to 9% from 6%; hedge funds to 14% from 10%; and real assets to 10% from 8%.
The increase in private equity will come out of the fund’s long-only equity allocation. The increased allocation to hedge funds is coming out of long-only fixed income. The increase in real assets will come from U.S. equity.
The rebalancing was done to maintain the fund’s growth and to manage volatility, according to Mr. Holmgren.