Austin (Texas) Police Retirement System hired Kennedy Capital Management to run about $30 million in active domestic small-cap value equity, CEO Sampson Jordan said in an e-mail.
Funding will come from Permal Group, which is being terminated from a $30 million hedge fund-of-funds fixed-income strategy. The pension fund is looking to increase its equity exposure and reduce its fixed-income exposure, Mr. Jordan said.
The termination is not related to Permal’s performance, he said.
As of Sept. 30, the $628 million pension fund had a 49.4% equity allocation, made up of domestic large-cap equity and global equity, and a 12.1% allocation to fixed income. Its target range for equity is 25% to 60% and 10% to 30% for fixed income.
Investment consultant The Bogdahn Group assisted.