Pennsylvania Turnpike Commission, Harrisburg, hired three managers to run global tactical asset allocation, hedge fund-of-funds and real estate strategies for its $300 million retiree medical trust.
The commission hired First Eagle Investment Management to run $26 million in GTAA; Skybridge Capital to run $13 million in its Skybridge Legion hedge fund of funds; and committed $13 million to American Strategic Value Realty Fund, an open-end, value-added real estate fund managed by American Realty Advisors. The RFPs were issued in July as the result of an asset allocation review that the commission's investment consultant, Investment Performance Services, conducted in May. The review created a 10% target to GTAA and increased the real estate target to 15% from 10% and the hedge fund-of-funds target to 10% from 5%, said David A. Russell, senior investment strategist at IPS.
Funding will come from reducing the targets to domestic equities and overall fixed income to 29% and 16%, respectively, from 35% and 30%. No managers were terminated.
Targets to international equities at 10%, and commodities and emerging markets equities at 5% each, were unchanged.