Oklahoma Police Pension & Retirement System, Oklahoma City, could issue an RFP in the second quarter for an opportunistic/value-added real estate manager, said Steven Snyder, executive director and chief investment officer.
The search is being conducted to bring the $2.2 billion pension fund closer to its 5% opportunistic/value-added real estate target, up from its current allocation of 1.5%. It has not been determined whether an opportunistic manager, value-added manager or combination of the two will be hired, Mr. Snyder said.
The pension fund is also trying to reach its 5% target allocation to core real estate. About $75 million is currently allocated to J.P. Morgan Asset Management. It has not been determined whether the pension fund will commit an additional $35 million to J.P. Morgan or a new manager, Mr. Snyder said.
Separately, the pension fund expects to hire two new long/short equity managers in April or May to manage about $6 million each, which will bring its “Class B” direct hedge fund portfolio up to its $100 million target, Mr. Snyder said. Due diligence is currently being conducted on several managers, which Mr. Snyder declined to name. Grosvenor Capital Management conducts back-office work and due diligence on “Class B” investments, but final discretion falls to the pension fund board. Grosvenor also manages a “Class A” fund of funds for the pension fund, for which Grosvenor has full discretion.
Also, the pension fund invested an additional $3.6 million in Sheffield International Partners, a global/long short equity fund managed by Sheffield Capital Management. Mr. Snyder could not immediately provide the size of Sheffield’s current allocation. The pension fund invested $7.5 million with Sheffield in December 2013.