Hollywood (Fla.) Police Officers' Retirement System invested $5 million in Blue Ocean Onshore Fund, a hedge fund that deploys debt capital to shipowners, managed by EnTrust Global.
The $347 million pension fund's board also approved liquidating the $32 million fixed-income portion of a balanced portfolio managed by Inverness Counsel, confirmed John McCann, senior consultant at AndCo Consulting, the pension fund's investment consultant.
Part of the portfolio will be used to fund the hedge fund investment, while the rest will be reallocated to the fund's other two fixed-income managers: $20 million to core manager Tocqueville Asset Management, giving it about $35 million, and $7 million to core manager Garcia Hamilton & Associates, giving it about $41 million.
Mr. McCann said the pension fund moved to two fixed-income managers as part of a shift to a "different direction."
As of Dec. 31, the actual allocation to fixed income as 22.6%.
Inverness Counsel still runs about $66 million in active domestic large-cap equities for the pension fund.