Sacramento County (Calif.) Employees' Retirement System invested in one hedge fund while terminating another.
The $11.5 billion pension fund invested $40 million in Aristeia Partners, a hedge fund managed by Aristeia Capital, confirmed Steve Davis, chief investment officer, in an email.
The retirement system also redeemed its $31 million position within Winton Capital Management's Winton Diversified Futures Fund. The board placed the hedge fund on watch on July 20 for performance and organizational issues.
The actions were announced at the pension fund's Tuesday board meeting.
In addition, the two remaining hedge funds that were put on watch in July — Lakewood Capital Partners for performance reasons and KLS Diversified Asset Management's KLS Diversified Fund for performance and organizational issues — remain on the retirement system's watchlist. The Lakewood fund has $37 million in assets for the pension fund, while the KLS fund manages $33 million.
Representatives from Winton, Lakewood and KLS could not be reached for comment.