The $2.6 billion Chicago Policemen's Annuity & Benefit Fund hired Chicago Equity Partners to manage $50 million in active U.S. smidcap value equity, following a search launched in June.
At a board meeting Tuesday, trustees also approved the retention of existing U.S. active smidcap value equity manager Fisher Investments, said Aoiffin Devitt, chief investment officer, in an email.
The original search sought one manager to run between $100 million and $110 million, and Fisher Investments was allowed to rebid. But Ms. Devitt stressed that the fund's process was "more of a re-underwriting of our manager coverage in smidcap value than a search."
Chicago Equity Partners' factor-based, quantitatively managed strategy is complementary to Fisher Investment's fundamental, top-down style, Ms. Devitt said, adding that the slight increase to smidcap value to $150 million from $126 million is because value "has been out of favor and has underperformed and we want to ensure that we have exposure there."
Funding for Chicago Equity Partners' allocation will come from a $26 million redemption from Fisher Investments to bring its mandate down to its $100 million target.
The remaining $24 million of the new allocation will come from reducing William Blair & Co.'s active U.S. smidcap growth equity strategy to its $100 million target weighting, Ms. Devitt said.