Kern County Employees’ Retirement Association, Bakersfield, Calif., recommended hiring Mellon Capital Management to run a $200 million tactical asset allocation strategy, said Peter Tirp, chief investment officer.
The $3.7 billion pension fund’s investment committee approved Mr. Tirp’s recommendation to hire Mellon to run its Tangent-Added strategy, he said in a telephone interview. Funding will come from domestic equity managers, none of whom will be terminated.
Investment consultant Wurts & Associates is assisting.
Also, the investment committee approved a recommendation from Mr. Tirp and hedge fund consultant Albourne America to make a direct investment of $17 million in Cevian Capital II, an activist European hedge fund.
It would be the 14th direct hedge fund investment for the pension fund since its first investment was funded in July 2013. The pension fund has a target of 15 investments totaling about $350 million, or 10% of the pension fund.
The pension fund’s board of trustees will vote on the investment committee’s recommendations at an ad hoc meeting sometime in September, Mr. Tirp said.