New Orleans City Employees’ Retirement System hired Cornerstone Investment Partners and Vanguard Group to manage domestic equity strategies, said Jesse Evans Jr., director.
Cornerstone was hired to manage $26 million in active domestic large-cap core equities. The $373 million pension fund issued an RFP in January “with the idea of building a core equity portfolio, which would be surrounded by managers that would accentuate the core equity position,” said Mr. Evans. Other finalists were Dana Investment Advisors and Rothschild Asset Management.
Vanguard was hired to run $26 million in passive domestic smidcap equities and $17 million in passive domestic large-cap equities.
Funding comes from the terminations of Calamos Investments, which ran a $32 million active domestic all-cap growth equity portfolio, and Goldman Sachs Asset Management, which ran a $19 million active domestic midcap growth equity portfolio. The terminations were the result of the pension fund’s move to core equities.
The rest of the funding comes from reductions of other equity managers’ portfolios; he did not have specific information.
Investment consultant The Bogdahn Group assisted.