Sacramento County (Calif.) Employees’ Retirement System made new infrastructure and private equity commitments totaling $56 million, redeemed from a hedge fund manager and placed a manager on watch.
In infrastructure, the $13.3 billion pension fund committed $36 million to Stonepeak Opportunities Fund managed by Stonepeak Partners, according its June and July investment activity report disclosed in materials posted for its Aug. 21 board meeting.
In private equity, SCERS committed $20 million to buyout fund Resurgens Technology Partners III.
Both Resurgens Technology and Stonepeak Partners are first-time managers for the pension fund, CIO Steve Davis confirmed.
Separately, in absolute return, SCERS reported issuing a full redemption request of $44 million from Davidson Kempner Institutional Partners managed by Davidson Kempner Capital Management. SCERS said in the investment activity report that it “first invested $32 million in 2019, added $12 million in 2020, and redeemed $20 million during the second quarter of 2024. The fund has generated SCERS a since inception net return of 5.7%.”
Davidson Kempner Institutional Partners was added to the pension fund's watchlist in April on the recommendation of consultant Cliffwater, according to a second-quarter investment manager compliance and watchlist report. The recommendation was “primarily based on the increase in Level 3 (less liquid) assets and recent decline in assets under management,” according to the report.
SCERS is also invested in Davidson Kempner Long-Term Distressed Opportunities Funds IV and Davidson Kempner Long-Term Distressed Opportunities Funds V, according to the report.
A Davidson Kempner spokesperson did not immediately respond to a request for comment.
The pension fund also said it had added William Blair Investment Management to its watchlist in June due to performance concerns in its international small-cap growth equity strategy. SCERS has been invested in the strategy since 2008 and said it has had meetings with the manager and will continue to monitor the strategy for improvements to performance.
A William Blair spokesperson declined to comment.
SCERS also reported it had removed Snyder Capital Management and PGIM from its watchlist, according to the investment manager compliance and watchlist report.
