Houston Firefighters’ Relief & Retirement Fund hired Mellon Capital Management to run an initial $25 million in its U.S. dynamic equity strategy, pending successful and final contract negotiations, said investment committee meeting minutes provided by Ajit Singh, chief investment officer.
The allocation could increase to $60 million provided the strategy is “performing as expected,” according to the minutes.
The pension fund’s domestic equity target is 17%. Mr. Singh declined to comment on the funding source.
Separately, the $3.7 billion pension fund is liquidating its investment in SMAHF II, a hedge fund of funds managed by Grosvenor Capital Management due to a shift in the pension fund’s target allocation, according to the minutes. In April, the investment committee reduced its hedge fund target to 8% from 12%.
Mr. Singh declined to provide additional information beyond the minutes.