New Orleans City Employees’ Retirement System has suspended a search for an opportunistic credit and/or opportunistic hedge fund manager to run a total of $20 million, said Jesse Evans Jr., director, in an e-mail.
The $364 million pension fund had issued an RFP in May for one or more opportunistic managers to run the portfolio in a credit or hedge fund commingled vehicle with a global focus. About 40 managers responded to the RFP.
Mr. Evans said, “As we had terminated seven hedge fund managers, there was some hesitation (from) some board members to move forward with the search. We felt that inviting two current managers who are in the hedge fund space to the upcoming meeting would help address concerns about the space. They will be allowed to participate in the manager search.”
At its June 9 board meeting, the pension fund had redeemed funds from seven hedge funds in which it had invested a total of $8.2 million.
Current managers Millennium Management and York Capital Management will make presentations at the board’s meeting in September and the board will consider resuming the search at that time.
Investment consultant The Bogdahn Group Bogdahn Group is assisting.