University of Houston System terminated Luther King Capital Management as a domestic small-cap equity manager, according to a webcast of Thursday’s endowment management committee meeting.
A desire to reduce the $572 million endowment’s small-cap equity exposure was provided as a reason for the termination.
The endowment had $9.1 million invested with Luther King as of June 30.
Additionally, the system will reduce its $24.7 million allocation to J O Hambro Capital Management to $8 million to rebalance within its roughly $261 million global equity portfolio.
Redeemed funds from Luther King and J O Hambro, an Asia Pacific-ex Japan equity manager, will be split evenly between U.S. long-only equity managers Columbia Management and Vulcan Value Partners, which ran $17 million and $15 million, respectively, as of June 30, said Raymond Bartlett, associate vice chancellor for finance for the system, in an e-mail.