Michigan Municipal Employees' Retirement System, Lansing, promoted money manager SPI Strategies out of its emerging managers program, at the same time increasing its allocation to SPI's long/short hedge fund to $100 million from $25 million, confirmed Jeb Burns, chief investment officer, in an interview.
Mr. Burns said SPI is being graduated out of the program because of its strong performance in its one-year relationship with the $10 billion pension plan.
The SPI fund returned 17.05%, compared to the S&P 500's 17.17% return, for the year ended March 31, but did so with less volatility, around 12% compared to the S&P 500's 15%, he said.
Mr. Burns said the manager has been moved to the system's $1.2 billion diversifying strategies portfolio. He said the funding for the larger allocation will come from reducing some yet-to-be determined manager allocations in the $4.5 billion equity portfolio.