Kern County Employees' Retirement Association, Bakersfield, Calif., might soon replace its two active domestic small-cap equity managers, said Peter Tirp, chief investment officer.
The $3.7 billion pension fund currently has its two managers, which run about $75 million each, on watch. Growth manager Columbia Management Investment Advisers is on watch for underperformance, and value manager Fisher Investments is on watch for style drift.
The pension fund's investment committee has approved due diligence visits with small-cap growth manager Geneva Capital Management and value managers AllianceBernstein and Silvercrest Asset Management, and a decision will be made within the next couple of months.
Columbia spokesman Carlos Melville and David Eckerly, Fisher group vice president, declined to comment.
Separately, the pension fund is narrowing its search for a credit-focused distressed hedge fund into which it will make an investment of about $17 million. Finalists are Centerbridge Partners, River Birch Capital and Southpaw Asset Management.
The pension fund created a target of 10% to direct hedge fund investments in July 2013 and this would be the 14th or 15th of 15 direct investments planned, depending on contract negotiations with prior managers.