Investment Management Weekly articles from July 2004

Investment Management Weekly archives from July 2004

SEC: Hedge-Fund Registration Looming.
July 5, 2004... The Securities and Exchange Commission is expected to propose- on July 14-a new rule mandating hedge fund registration with the agency. Such a move would open hedge fund books to SEC examiners and make them subject to an array of regulations...

Ohio PERS Keeps Eye on Capital Guardian.
July 5, 2004... The Ohio Public Employees' Retirement System has placed Capital Guardian Trust Co. on watch for performance issues on its roughly $200 million small-cap growth account. Rich Baker, spokesman for the $70 billion plan, confirmed the firm's...

Experts Warn of Slim Stock Pickings in 2005.
July 5, 2004... While the majority of the industry's attention has been squarely focused on the scandal and operational aspects of the business, the investment climate has taken a sharp turn for the worse. Morningstar officials called for a renewed focus...

LACERS Launching Emerging Manager Searches.
July 5, 2004... The $30 billion Los Angeles County Employees' Retirement System will search for emerging fixed-income managers to oversee mandates in core, enhanced core and high yield, said Juan Almaguer, investment officer. The system "promoted" LM...

LaMPERS Inspect Forstmann-Leff.
July 5, 2004... The $1.2 billion Louisiana Municipal Police Employees' Retirement System has placed Forstmann-Leff on watch for performance issues on its mid-cap growth account. Director Virginia Eckert confirmed the manager's watch status, but referred...

Austin Police Overhaul Leads to Real Estate.
July 5, 2004... The $252 million Austin Police Retirement System is considering making opportunistic investments in real estate. The move to real estate was a result of a portfolio overhaul designed to protect against an interest rate increases. Sampson...

San Diego City Seeks Real Estate Consultant.
July 5, 2004... The San Diego City Employees' Retirement System is searching for a real estate-consultant to replace Russell Investment Group. Dawne Clark, assistant investment officer at the $3.1 billion system, said that the consultant's contract had...

N.H. Director Bolts to Pennsylvania SERS.
July 5, 2004... Eric Henry, executive director of the $4.5 billion New Hampshire Retirement System has left the plan after four years to become the executive director of the $25 billion Pennsylvania State Employees' Retirement System. Henry's resignation was...

Philly Board Screens CRA RogersCasey.
July 5, 2004... The Philadelphia Board of Pension & Investments is closely monitoring its new relationship with CRA RogersCasey, after the recent and abrupt departure of firm president and CEO Kevin Green. He was immediately replaced by Tim Barron, former...

San Jose Federated Goes Global.
July 5, 2004... The $1.1 billion San Jose Federated City Employees' Retirement System is in the finalist stage of a $100 million global fixed-income search, which could eliminate the plan's current international fixed-income portfolio, said Ron Kumar, plan...

CalPERS Appoints New Executive.
July 5, 2004... The $160 billion California Public Employees' Retirement System has appointed Anne Stausboll as its new assistant executive officer for investment operations and will assume her new role in September. Stausboll's appointment replaces Robert...

Fred Alger Lures Energy Analyst.
July 5, 2004... Fred Alger Management, in an effort to build its traditional growth platform, has hired a energy analyst. Fauzia Rashid, former equity analyst at Bank of New York Asset Management, joined Alger as its new VP and equity analyst. Zachary...

Bank One Coughs Up $90M for Shady Deals.
July 5, 2004... Bank One Corp. on June 29, agreed to a $90 million settlement with New York state and federal regulators for allowing hedge funds to engage in abusive round-trip trading of its fund shares, a racket that depleted the returns of long-term...

Hood Gets Value in The Small Things.
July 5, 2004... Operating in what might be an unpredictable stock-picking environment, small-cap value, Scott Hood, portfolio manager at the Pasadena, Calif.-based, First Wilshire Securities Management, can boast the second best return among U.S. small-cap...

Odds & Ends.
July 5, 2004... *David L. Babson & Co. has re-branded itself Babson Capital Management. The $84 billion investment manager is hoping the new name can raise awareness of the scope of its product line in the marketplace. *The Federal Reserve Bank Wed., June...

Bond Pro Accused of Fraud.
July 19, 2004... Bear Stearns & Co. banker, P. Nicholas Hurtgen has resigned from his job as manager of the firm's Chicago-based office, amid allegations linking him to improprieties in a Wisconsin pension fund bond deal. According to published reports,...

SBCERA Initiates Replacement Searches.
July 19, 2004... The $3.2 billion San Bernardino County Employees' Retirement Association (SBCERA) has jumpstarted a search to replace two managers that were terminated last month, said Donald Pierce, the plan's investment officer. The plan terminated...

TIPS, POB Investments Gain Momentum.
July 19, 2004... As the threat of inflation continues to loom on the horizon, some investors have moved to seek refuge in atypical fixed-income investments such as pension obligation bonds (POBs) and Treasury Inflation-Protection Securities (TIPS) to meet...

Former Md. CIO Alleges Wrongful Termination.
July 19, 2004... Carol Boykin, former CIO for the $27 billion Maryland State Retirement and Pension Systems has reportedly alleged that she was fired from her position after cooperating in the federal investigation of money manager Nathan Chapman. Chapman...

Arizona Treasury Issues Consultant RFI.
July 19, 2004... The Arizona State Treasury, which oversees approximately $8 billion in two local government investment pools, has issued an RFI for an investment consultant. Wanda Simeona, executive assistant to the Treasurer David Petersen, said the...

Montana Plots Consultant Search.
July 19, 2004... The approximately $5 billion State of Montana Board of Investments has put the feelers out for an investment consultant, IMW learned last week. According to the RFP, which is posted on the board's Web site, the investment board is seeking...

Oregon PERF May Change Consultants.
July 19, 2004... Pacific Corporate Group (PCG) and Pension Consulting Alliance (PCA) could potentially be replaced as the consultants for the $45 billion Oregon Public Employees' Retirement Fund. PCG currently serves as the plan's alternative investment...

Franklin Templeton PCG Plots Small-Cap.
July 19, 2004... The Franklin Templeton Private Client Group is considering reopening its small-cap growth strategy to institutional and high net-worth clients. The private-client group closed the fund-the Franklin Templeton Small-Cap Growth Strategy-in...

Hedge Fund Shop Hires Industry Pro.
July 19, 2004... Thomas Gimbel, former managing director of hedge fund investments at Credit Suisse Asset Management (CSAM), has been appointed the managing director of the business and product development team at Optima Fund Management, a hedge fund-of-funds...

APFC Names Burns Director.
July 19, 2004... The Alaska Permanent Fund Corp. has named Michael Burns its new executive director. The appointment followed an intensive, three-month search to replace Robert Storer in which APFC named chief operating officer Robert Bartholomew interim...

DOI Trust Fund Seeks Investment Chief.
July 19, 2004... The U.S. Department of the Interior's Office of the Special Trustee for American Indians (OST) is seeking a chief of trust funds investments to replace Robert Upton, who was promoted to a senior executive at the agency, said Dean Brinker, human...

Westchester Bank Acquires Equity Firm.
July 19, 2004... The Yonkers, N.Y.-based Hudson Valley Bank is the homestretch of acquiring money management firm, A.R. Schmeidler & Co., Inc., said Stephen Brown, chief operating officer at Hudson Valley. The New York-based firm specializes in growth and value...

LA Utility Hires Two for High Yield.
July 19, 2004... The $5.8 billion Los Angles Water & Power Employees' Retirement Plan has selected Loomis, Sayles & Co. and Wells Capital Management to manage a new high yield fixed-income allocation. The duo will each oversee $100 million, said Sangeeta...

Ala. PACT Nixes Fox for Bear Stearns.
July 19, 2004... The Alabama Prepaid Affordable College Tuition plan has replaced Fox Asset Management with Bear Stearns Asset Management for a large-cap equity mandate worth $82 million. The replacement followed a seven- month portfolio rebalancing aimed...

Russell Survey: Money Managers Positive About Markets.
July 19, 2004... Domestic large-cap managers polled by the Russell Investment Group, viewed the market outlook as positive, despite the ongoing turmoil in Iraq and increases in interest rates. Some 75% of managers polled cited healthcare stocks as the best...

Fiduciary Trust Platform Poised for Corporate Bond Rise.
July 19, 2004... Robert Waldner, senior VP of global fixed-income at Fiduciary Trust Company International, views the global corporate bond market as a burgeoning investment trend among institutional investors. As he explains it, the global corporate bond...

Corrections.
July 19, 2004... IMW's June 28 story "Endowment Fills CIO Slot" incorrectly stated that the chief investment officer position had been vacant for 11 years. The position had been vacant since Feb. 2003. In the same issue, the story "Mass. Muni Issues...

Odds & Ends.
July 19, 2004... *San Francisco City & County Employees' Retirement System will postpone considering an emerging-manager program until December 2005. *Delta Air Lines will post a second-quarter $117 million non-cash settlement charge related to its...

Greenspan: Leave Hedge Funds Alone.
July 26, 2004... Federal Reserve Board Chairman Alan Greenspan publicly decried the looming hedge fund registration requirements. A proposal to require hedge fund managers to register with the Securities and Exchange Commission was endorsed last week by the...

Illinois Municipal Plan Plots Searches.
July 26, 2004... The investment committee of the $14 billion Illinois Municipal Retirement System has put forth a recommendation that the plan's board initiate searches for a manager-of-managers to oversee an allocation of up to $400 million; and two minority-...

Cummins Reportedly Eyes Int'l, Global Equity.
July 26, 2004... Cummins, Inc.-the Columbus, Ind.-based diesel maker-is said to be gearing up to launch searches for international and global equity managers, according to industry sources familiar with the company. Full details of the pending searches were...

Anchorage PFRB Considers Balanced Fund.
July 26, 2004... The $370 million Anchorage Police & Fire Retirement Board is considering adding a balanced fund to its portfolio. A balanced fund-which would buy into common stock, preferred stock as well as the short-term bond market-would enhance...

Mass. Fund Seeks Mid-Cap Core Manager.
July 26, 2004... The Brookline Retirement System is currently accepting bids for a domestic mid-cap core equity account, according to an RFP issued by the board. Frank Zecha, director of the retirement system, did not return calls seeking further details...

Waltham Searches for Small-Cap Manager.
July 26, 2004... The $130 million Waltham Contributory Retirement System is searching for a small-cap growth manager to oversee an $8 million mandate. Calls to the fund were directed to the plan's consultant, Matt Seney, of Wainwright Investment Counsel....

Calif. Fund Contemplates Asset Study.
July 26, 2004... The $300 million Imperial County Retirement System is considering initiating its first asset-liability study, said Barbara McFetridge, retirement system manager. "We had our consultant come in and explain to the board what the study...

Director Exits New Mexico Fund.
July 26, 2004... The $7 billion New Mexico Educational Retirement Board is short an executive director following the departure of Danny Lyle, said Frank Foy, the fund's CIO. His last day was July 12. Lyle reportedly parted ways with the plan to pursue...

CalSTRS Posts Big Gains, Once Again.
July 26, 2004... For the second year running, the California State Teachers' Retirement System's $116 billion investment portfolio posted gains, setting a positive tone for the pension fund as it enters a new fiscal year. Overall, the pension fund's value...

PSERS Boosts Private Equity Allocation.
July 26, 2004... Under the watch of new Executive Director Eric Henry, the $24.7 billion Pennsylvania State Employees' Retirement System kicked off the new fiscal year with $150 million of new commitments to private equity funds, putting it on track to boost...

Consultants Receive Harsh Criticism The Gloves Come Off.
July 26, 2004... A panel heaped criticism upon criticism on the consultant industry for rampant "pay to play" abuse and spurred heated exchange during the liveliest moment of the conference. Panelists for the July 20 educational session, "Empowering Public...

Panelists Not Optimistic in Wake of Fund Scandal.
July 26, 2004... Panelists' opinion oscillated between pragmatic advice and realistic pessimism on the subject of eliminating future mutual-fund industry scandal. "The reason so much has been uncovered so fast is because it is rampant," said panelist Ted...

Boca Raton Trustee Offers Newcomer Perspective.
July 26, 2004... John Girard, trustee at Boca Raton Police & Firefighters Retirement System, gave perspective on entering the plan-sponsor market during the "Effectively Managing a New Pension Plan" session. Girard urged the new and younger plan sponsors to...

Non-U.S. Equity, Asia, Top Equity Panel Discussion.
July 26, 2004... Out-performance of non-U.S. equity and a thriving Asian market topped the agenda of the "Riding the U.S. Equity Roller Coaster-What's Next?" session. "The non-U.S. equity has a chance to repeat the performance we saw during the 1970s and...

"Stochastic" Approach Recommended for Actuarial Assumption.
July 26, 2004... Stochastic method is best suited for managing liability and actuarial assumption in a defined benefit plan, said panelists during the "Actuarial Assumptions: Effectively Valuing/Managing Liabilities" session. Rick Roeder, director at...

Panel: Selecting Transition Manager Fraught with Challenges.
July 26, 2004... The "Demystifying the Realities of Transition Management & Long-Term Transition Costs" panel addressed the burden in cost, performance and preparation facing a plan sponsor in need of a transition manager. San Francisco City & County...

Long Term Value Keeps Holt on Track.
July 26, 2004... Ronald Holt Jr. is a research kind of guy. As a one-time Merrill Lynch & Co. analyst, Holt, the managing director of research and co-head portfolio manager the international strategy at Hansberger Global Investors, earned some perspective on...

Odds & Ends.
July 26, 2004... *The South Dakota Investment Board has named Matt Clark as its new investment officer, replacing Steve Myers who is retiring. Clark will be responsible for the $5.5 billion portfolio of the South Dakota Retirement System. *The San Diego...