Los Angeles County Employees Retirement Association, Pasadena, Calif., launched two RFPs: one for a separate account manager to construct and run a $200 million portfolio of emerging manager hedge funds and another for a performance measurement provider, the RFPs on the $59.6 billion pension fund's website show.
The separate account manager would source, conduct due diligence and manage a portfolio of emerging manager hedge funds that adheres to LACERA's policies, the RFP said.
LACERA has a long-term target of 4% to diversified hedge funds. In September, the board adopted a hedge fund structure review in closed session that included building a hedge fund emerging manager program. Albourne Partners provides non-discretionary consulting services for LACERA's diversified hedge funds portfolio.
For purposes of the RFP, LACERA defines 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.
The separate account RFP is available on LACERA's website. The staff will make recommendations about a selection in the third or fourth quarter. Proposals for both RFPs are due at 5 p.m. PST on Feb. 14.
The performance measurement provider RFP is also available on LACERA's website. A selection is expected in the second quarter.
The performance measurement provider search follows the board's direction in May to enhance reporting by including fee attribution, fee monitoring for each asset class and ongoing fees paid to money managers compared with managers' return and risk.
