St. Paul (Minn.) Teachers' Retirement Fund Association hired hedge fund-of-funds manager EnTrust Capital to manage about $55 million, said Paul Doane, executive director of the $1.1 billion defined benefit pension plan.
EnTrust will manage the assets using a fund-of-one approach, in which the pension fund will be the only investor, Mr. Doane said. It's the first investment in hedge funds for the pension fund.
Funding will come from reducing its global equity allocation, which had been at 65% of assets, above its 55% target. No managers will be terminated, Mr. Doane said.
Aetos Capital, BlackRock Alternative Advisors and Permal Group were the other finalists.
The Bogdahn Group assisted.
Separately, Jill Schurtz was named executive director of the pension fund, effective June 1.
Mr. Doane said he will leave the pension fund at the end of June. “I might retire, I don't know,” Mr. Doane said.
Ms. Schurtz was a senior adviser at Harmony Capital Management, a private equity fund of funds, and previously was CEO of Robeco-Sage Capital Management, which was acquired by Arden Asset Management in 2001.