Los Angeles County Employees Retirement Association, Pasadena, Calif., hired Stable Asset Management to run $250 million in a manager of emerging hedge fund managers portfolio, according to a report of closed session actions taken at the board's Dec. 9 meeting.
The $58.2 billion pension fund issued an RFP in January for a separate account manager that would source, conduct due diligence and manage a portfolio of emerging manager hedge funds.
That RFP defined an emerging manager hedge fund as one that is less than 3 years old and has less than $1 billion in assets under management. The principals of the hedge fund firm must always hold at least 66% of the ownership interest of the company, the RFP said.
LACERA has a long-term target of 4% to diversified hedge funds.