Search activity for the third quarter of 2021 decreased 9% from the prior quarter and decreased 5.9% from the third quarter of 2020. The number of traditional manager searches decreased 26%, and equity manager searches in particular decreased 50% from the prior quarter. Growth and value manager searches for this year totaled $1.65 billion and $329 million, respectively. Notable activity for the quarter included New York City Retirement Systems’ $22.6 billion search for active international equity managers; Illinois Police Officers' Pension Investment Fund's searches for passive managers to manage up to $9 billion in total assets – including $2.25 billion U.S. large-cap equity, $2.25 billion international developed markets equity and $1.08 billion emerging market equity portfolios after existing mandates expire and diversifying strategies are added. Los Angeles City Employees' Retirement System also launched searches for passive managers to manage $8.9 billion in U.S. equities, non U.S. equities, core fixed income and real assets portfolios.
Hiring activity decreased 22.3% from the previous quarter to $72.1 billion. The number of hires decreased 15.2% for the quarter and increased 22.1% from the same period a year ago. The number of hedge fund hires increased 110% from the previous quarter, which accounted for 36.8% of this year's total hedge fund hires through Sept. 30. Growth and value mandates totaled $1 billion and $910 million for this year, respectively. Illinois Firefighters' Pension Investment Fund hired RhumbLine Advisers for its $3.15 billion domestic equity portfolio, and Massachusetts Pension Reserves Investment Management Board also awarded RhumbLine Advisers a $1 billion mandate for its domestic large-cap equity strategy. KKR won 15 mandates totaling $3.44 billion for its fixed income, infrastructure, private equity buyout and opportunistic real estate strategies. State Street Global Advisors was awarded two mandates totaling $3.35 billion from Illinois Firefighters' Pension Investment Fund and School Employees Retirement System of Ohio for its traditional and large-cap value equity strategies.
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