Sacramento County (Calif.) Employees' Retirement System has rehired Cliffwater as its alternatives investment consultant, confirmed Steve Davis, chief investment officer of the $11.4 billion pension system.
The search was launched in February 2020 so that the board could "evaluate the marketplace for consulting to assist in the further development and ongoing monitoring of SCERS' maturing alternatives portfolio," according to the RFP.
The board approved the decision at its Wednesday meeting.
Also at the meeting, the board announced a decision to partially redeem $25 million from a small-cap growth equities strategy managed by Weatherbie Capital to reduce an imbalance between small-cap growth and value. SCERS currently has $170 million in the Weatherbie strategy.
Part of the redeemed capital will be reallocated to its new domestic small-cap value equities manager, Snyder Capital Management, which was selected in December to run $110 million on behalf of the pension system. The rest will go toward rebalancing and cash.
The board also redeemed $108 million from a passive domestic small-cap value equities strategy run by State Street Global Advisors to fund the rest of Snyder Capital's small-cap mandate.
In addition, two 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 $41 million in assets for the pension fund, while the KLS fund manages $37 million.
Representatives from Lakewood and KLS could not be reached for comment.