Sacramento County (Calif.) Employees' Retirement System rebalanced its equities and fixed-income portfolios, re-upped with an open-end private equity fund and redeemed from a hedge fund that's been on its watch list, an investment activity report from the $11.7 billion pension plan said.
As part of a rebalancing plan, the pension fund partially redeemed from these strategies within its equities portfolio:
- $94 million from a passive large-cap equities strategy managed by AllianceBernstein, leaving it with about $1.4 billion.
- $50 million from an international developed large-cap growth strategy run by Walter Scott & Partners, leaving it with $616 million.
- $37 million from an active large-cap equities strategy run by Eagle Capital Management, leaving it with $329 million.
- $33 million from an active U.S. equities strategy from J.P. Morgan Asset Management, leaving it with $165 million.
- $30 million from an active U.S. large-cap equities strategy run by AQR Capital Management, leaving it with $313 million.
- $17 million from an active U.S. core equities strategy run by D.E. Shaw & Co. and leaving $167 million.
Meanwhile, SCERS increased its allocation to an international developed large-cap value strategy run by LSV Asset Management, bringing the strategy's total assets run for the pension fund to $524 million.
Within its fixed-income portfolio, SCERS upped its allocation to a core-plus fixed-income strategy run by TCW MetWest Asset Management by $40 million, bringing its total to about $513 million.
SCERS also made a follow-on commitment of $25 million to TCP Direct Lending Fund VIII, managed by Tennenbaum Capital Partners. SCERS had $69 million in the direct lending fund as of March 31.
Finally, the board terminated its $39 million investment with KLS Diversified Asset Management's KLS Diversified Fund and removed the fund from the watch list. The KLS fund was put on watch in July for performance and organizational issues.
Lakewood Capital Partners remains on watch for performance reasons. The hedge fund manages $47 million for the pension fund.
Representatives from KLS and Lakewood could not be immediately reached for comment.
Steve Davis, chief investment officer, was not immediately available to provide additional information.