Los Angeles Water & Power Employees' Retirement Plan hired Blackstone Alternative Asset Management to run a $580 million hedge fund-of-funds portfolio, said Jeremy Wolfson, chief investment officer, in an email.
The $13.5 billion pension fund issued an RFP in September 2016 as a result of the September 2015 increase of its hedge fund target to 5% from 2%. According to a memo from investment consultant RVK, the pension fund was seeking managers to run a customized "hedge fund-of-one" portfolio.
Other finalists were BlackRock (BLK), Goldman Sachs Asset Management and Grosvenor Capital Management. Incumbent "hedge fund-of-one" managers GAM and Morgan Stanley (MS) Alternative Investment Partners did rebid. Their portfolio sizes and whether they were retained could not be immediately learned.