San Antonio Fire & Police Pension Fund invested about $30 million total with two hedge managers, said recently released board meeting minutes.
The $2.7 billion pension invested about $15 million each in BFAM Asian Opportunities Master Fund, managed by BFAM Partners, and Alyeska Fund, a market-neutral fundamental equity fund managed by Alyeska Investment Group.
Funding for Alyeska will come from the termination of Och-Ziff Capital Management Group’s OZ Master Fund, which had $15 million in plan assets.
A reason for Och-Ziff’s termination and a funding source for the BFAM Asian Opportunities fund were not disclosed.
Separately, the pension fund will redeem $50 million of its $135 million investment in AQR Capital Management’s Global Risk Premium strategy because of performance concerns. Of the $50 million, $30 million and $20 million will be reallocated to existing equity managers Pacific Investment Management Co. and First Eagle Investment Management, respectively. An AQR spokesman declined to comment.
Additionally, the pension fund will redeem $25 million and $50 million from domestic large-cap equity managers Cornerstone Investment Partners and C.S. McKee, respectively. Proceeds from Cornerstone and C.S. McKee will be reallocated to existing Northern Trust Asset Management large-cap core and value equity index strategies, respectively. Whether these are full or partial redemptions, reasons for the redemptions and Northern Trust’s total allocation size could not be learned by press time.
Matthew O’Reilly, chief investment officer, could not be reached for additional information by press time.