Illinois State Board of Investment, Chicago, hired Rock Creek Group and Appomattox Advisory to manage $100 million and $50 million, respectively, in custom multistrategy portfolios made up of underlying emerging hedge fund managers, said William R. Atwood, executive director.
Underlying managers must conform to the Illinois statute definition of an emerging manager as a firm that is minority- or female-owned or owned by a person with a disability, and have more than $10 million and less than $10 billion in assets under management, the RFP said.
ISBI was indifferent about the ownership structure of the fund-of-funds managers, Mr. Atwood said, noting of the two managers hired, Appomattox is female owned. “We want the hedge fund-of-funds managers to build out a portfolio of emerging hedge funds,” he said.
ISBI, which oversees $15.1 billion in defined benefit plan assets, is seeking to diversify its $1.52 billion hedge fund allocation, all in funds of funds, Mr. Atwood said. It will fund the two managers pro rata from its existing hedge fund-of-funds mangers, including Rock Creek, which already had $577 million, as well as Entrust Partners with $564 million, and Mesirow Advanced Strategies with $375 million, Mr. Atwood said. The managers' values are as of Nov. 30.
The hirings were the result of an RFP issued last June.
Marquette Associates, ISBI's investment consultant, assisted with the search.