Searches and Hires

Merced County issues call for opportunistic fixed-income firm

Merced County (Calif.) Employees' Retirement Association is searching for an opportunistic fixed-income manager to run about $42 million, said Kristen Santos, retirement plan administrator.

The $838 million pension fund is searching for a firm to complement Barrow Hanley Mewhinney & Strauss, which runs $133 million in active domestic core fixed income. Vanguard Group is the pension fund's other fixed-income manager, running $37 million in a passive U.S. Treasuries portfolio.

The pension fund is seeking a manager to provide a "blend of core plus, opportunistic global multisector and opportunistic credit," Ms. Santos said.

There is no RFP; interested managers should contact investment consultant Meketa Investment Group, Ms. Santos said. A timeline for a decision has yet to be determined.

As of Sept. 30, the pension fund's allocation to domestic fixed income was 20.3%; the target is 17%.

Separately, the pension fund's board on Nov. 8 approved a $10 million direct hedge fund investment in Taconic Opportunity Fund, a credit-oriented hedge fund managed by Taconic Capital Advisors.

As of Sept. 30, the pension fund's hedge fund allocation was 5.2%; the target is 5%.