Chattanooga (Tenn.) General Pension Plan hired Diamond Hill Capital Management and Sustainable Insight Capital Management to run $9 million and $4 million, respectively, in active domestic large-cap value equities, Scott A. Arwine, senior consultant at Gavion, said in an email.
Gavion, the $300 million pension fund's investment consultant, assisted in the search.
The pension fund conducted a shortlist search after the October termination of Herndon Capital Management, which ran $9 million in active domestic large-cap equities, because the firm was closing. Assets have been parked in an iShares Russell 1000 Growth index fund.
The pension fund also reduced an active domestic large-cap equity portfolio managed by WEDGE Capital Management by $4 million to fund the Sustainable Insight hire, leaving WEDGE with $21 million.
The other finalist was Seizert Capital Partners.
The pension fund's domestic equities target is 30%, and the actual allocation as of June 30 was about 28%, Mr. Arwine said.