University of Maine System’s investment committee recommended retaining EnTrustPermal as hedge fund-of-funds manager after a review of the manager following the merger of EnTrust Capital and Permal Group, said Tracy Elliott, director of finance and controller of the Bangor-based university.
Permal Group was the original manager before the merger; the new entity currently runs a $16 million portfolio for the university’s $259 million managed investment pool of six endowments and $2 million for the $33 million defined benefit plan.
The university’s investment consultant, NEPC, conducted a shortlist search profiling four other strategies to “assess other options” after putting Permal Group on “hold” in February and recommended to the committee at its meeting on Wednesday to retain the manager. In a presentation to the committee, NEPC did not say which other strategies it profiled.
Money manager Legg Mason announced in January it would merge its Permal Group subsidiary with EnTrust Capital to increase assets managed by its hedge funds-of-funds business to $26 billion.