St. Louis Public School Retirement System made three direct investments in hedge funds totaling $35 million, according to recently released investment committee minutes.
The $927 million pension fund invested $15 million in a multistrategy hedge fund managed by Whitebox Advisors, and $10 million each in global long/short equity hedge funds managed by Passport Capital and Standard Pacific Capital.
The hires are a result of an increase in the pension fund's hedge fund target to 9% from 5% and the elimination of the pension fund's 4% target to market-neutral strategies.
Funding for the investments comes from the liquidation of a $36.5 million direct investment in a market-neutral hedge fund managed by Blue Rock Advisors. The additional $1.5 million will remain as excess cash that could be additional allocations to the three managers.
Separately, three private equity managers will make presentations to the investment committee at its June 19 meeting for a potential secondary private equity commitment of between $4 million and $7 million. DB Private Equity is presenting DB Secondary Opportunities Fund III, Landmark Partners will present Landmark Equity Partners XV, and Lexington Partners will present Lexington Capital Partners VIII.
Investment consultant NEPC is assisting.
Andrew Clark, executive director, did not return a phone call by press time.