Oakland (Calif.) Police & Fire Retirement System is searching for a domestic small-cap growth equity manager, said David Sancewich, principal at Pension Consulting Alliance, investment consultant for the $370 million pension fund, in an e-mail.
The selected firm will replace Lord, Abbett & Co., which managed about $8.2 million in a similar strategy and was terminated because of “severe underperformance and the (manager’s) style of investing in high-growth small-cap stocks, as opposed to ‘core growth,’” Mr. Sancewich wrote.
A Lord Abbett spokesman could not immediately be reached for additional information.
The pension fund already has an ongoing search for a domestic core fixed-income manager to run between $30 million and $40 million. That search is being conducted as part of a review of current core fixed-income manager T. Rowe Price Group. “Fees and flat performance are the drivers of the search,” Mr. Sancewich wrote.
T. Rowe Price, which managed $38.4 million as of March 31, is invited to rebid. A T. Rowe Price spokeswoman declined to comment.
The fixed-income RFP is available on PCA’s website. The equity RFP will be posted on PCA’s website within the next two weeks.
Proposals for the fixed-income search are due by 5 p.m. PDT on June 17. Finalist interviews for both the equity and fixed-income searches could take place in August, Mr. Sancewich wrote. There are no set hiring dates.
Separately, the pension fund placed high-yield/bank loans manager DDJ Capital Management on watch because of the departure of lead portfolio manager Tony Ranaldi. The pension fund had $7.6 million invested in the DDJ strategy as of March 31.