Investment Management Weekly articles from July 2006

Investment Management Weekly archives from July 2006

At Press Time.
July 3, 2006... Oh Fudge!: Asset Manager Fined for RFP Embellishment The Securities and Exchange Commission (SEC) has fined CapitalWorks and the firm's principal, Michael Correnti, $40,000 and $25,000, respectively, for "fudging" on RFP's that the firm...

Virgin Islands Fund Eyes New Asset Classes.
July 3, 2006... Are Hedge Fund and Private Equity Investments on the Horizon? The nearly $1.4 billion U.S. Virgin Islands Government Employees' Retirement System (GERS) is actively eyeing its first foray into hedge funds, private equity and emerging...

Phoenix Plots Large-Cap Replacement Search.
July 3, 2006... The $1.2 billion City of Phoenix Employees' Retirement System (COPERS) is planning to initiate a search for a domestic equity large-cap value manager in the near future, said a source at fund. The search-which was approved at the board's...

BGI: Liability Driven Investment is the Future.
July 3, 2006... Matthew Tucker has seen the future and-at least for the U.S. and the giant corporations with their struggling, underfunded pension funds-that future is liability driven investment. Tucker, head of fixed-income investment solutions at...

Clearwater Preps Equity Searches.
July 3, 2006... The $439 million Employees' Pension Fund of the City of Clearwater is gearing up to launch two searches later this summer, said Steve Moskun, cash and investments manager with the plan. Moskun explained that the board is currently working...

Ohio Workers' Comp Postpones Searches.
July 3, 2006... The $14 billion Ohio Bureau of Workers' Compensation (BWC) has placed the brakes on two of its searches, pending the adoption of a formal asset allocation, said Nancy Smeltzer, spokeswoman for the Columbus-based plan. Earlier this month,...

N.H. Plan to Issue Consultant RFP.
July 3, 2006... The $96 million Manchester Employees' Contributory Retirement System is gearing up to issue an RFP within the next month for an investment consultant, said Gerard Fleury, executive director of the plan. He explained the search is being...

LACERS Launches Consultant Search.
July 3, 2006... The board of the $10.5 billion Los Angeles City Employees' Retirement System (LACERS) has issued an RFP for a real estate consultant, said Wayne Ige, investment and cash management officer with the plan. Ige explained that the board first...

CalSTRS Scraps Headhunter Search.
July 3, 2006... The Sacramento-based California State Teachers' Retirement System (CalSTRS) has cancelled its search for qualified firms to help the plan identify and recruit senior investment officers, said Sherry Reser, CalSTRS' spokeswoman. Late in...

Allianz Global Loses Int'l Equity CIO.
July 3, 2006... Ian Vose, the CIO of international equity with Allianz Global Investors, is leaving the firm to join Scottish Widows Investment Partnership (SWIP). According to a press release issued by SWIP, Vose has been with Allianz for five years,...

Berks County Replaces Equity Managers.
July 3, 2006... The roughly $166 million Berks County Employees' Retirement Fund has hired Westfield Capital Management, Chase Investment Counsel and Rigel Capital as new large-cap growth managers for the fund, said Nelson Long, treasurer at the Pa.-based...

CalPERS Picks Two for Manager Program.
July 3, 2006... The $211 billion California Public Employees' Retirement System (CalPERS) has chosen two firms-Legato Capital Management and Strategic Investment Solutions(SIS)-to serve as advisors for the plan's second manager development program, said Clark...

Industry At A Glance: Russell Survey Finds that Bigger is Better.
July 3, 2006... The results of the most recent Investment Manager Outlook-Russell Investment Group's quarterly survey of professional money managers-show that one major theme is present in the market: investment managers are clearly attracted to size. ...

Industry At A Glance: Private Equity Looks for Sweet Spot.
July 3, 2006... More Competition in Mid-Market Find Firms Scrambling to Find a Profitable Niche A freshly-minted acronym, "Jammbog," is starting to percolate through the private equity market, according to IMW's sister publication, Investment Dealers'...

Odds & Ends.
July 3, 2006... Fund Evaluation Group (FEG) has appointed Brian Hooper and Christina Foster to its research department. Hooper will be responsible for covering domestic growth managers, while Foster will be responsible for providing support to the traditional...

Pension Plans Healthier Than Six Months Ago.
July 10, 2006... Despite a setback last month, the average pension plan is doing better now than at the start of the year, according to Mellon Financial Corporation. The firm found that average pension liabilities increased 1% in June, with assets only...

Los Angeles Utility Eyes Hedge Funds: Plan Plots Foray into Asset Class.
July 10, 2006... The Los Angeles Department of Water and Power Retirement Plan is in the process of being educated on hedge funds, with a search scheduled to follow in the future, confirmed Sangeeta Bhatia, administrator at the $6 billion fund. "Right now,...

Ohio PERS Looks for Minority Managers.
July 10, 2006... The nearly $72 billion Ohio Public Employees' Retirement System (OPERS) has issued an RFP for a manager-of-minority managers. The board had been discussing the possibility of such a search since April, when it was brought to their attention...

Oklahoma Lawmakers Fail to Resolve Teachers Pension Problems.
July 10, 2006... Oklahoma made no progress toward solving its teacher retirement system problems during the 2006 legislative sessions, but State Treasurer Scott Meacham vowed the effort would continue in 2007 and beyond, according to IMW's sister publication,...

Florida Endowment Hunts for Treasurer.
July 10, 2006... The $110 million Florida International University (FIU) is searching for a treasurer to coordinate and operate fund investments, according to the endowments Web site. Spokesman Jose Dante Parra, said the search was launched to replaced...

Washington State Seeks Real Estate Pro.
July 10, 2006... The $65 billion Washington State Investment Board (WSIB) is looking for a real estate investment officer to help spearhead the board's $5.5 billion real estate allocation. According to the WSIB Web site, the hired officer would assist the...

LA 911 Consultant Search Cancelled?
July 10, 2006... The board of the $11.5 billion Los Angeles Fire & Police Pension System is mulling the idea of cancelling its search for an alternative investment consultant. According to the agenda for the fund's July 6 meeting, the board received...

LASERS Gets New Deputy Director.
July 10, 2006... The board of the $7 billion Louisiana State Employees' Retirement System (LASERS) has approved the appointment of Maris LeBlanc as the new deputy director of the plan. She will begin her duties as deputy director on July 20. LeBlanc...

Gotham Teachers' Replaces BGI.
July 10, 2006... The $36.5 billion Teachers' Retirement System of the City of New York (NYCTRS) has made changes to the "Tactical Asset Allocation Sector" of its plan that has resulted in the replacement of at least one manager, according to the highlights from...

Missouri Hires SSgA for Terror-Free Index.
July 10, 2006... The $20 million Missouri Investment Trust (MIT) has selected State Street Global Advisors (SSgA) to oversee a $5 million international large-cap equity passive index that screens out companies with terror ties, said Mark Hughes, spokesman for...

Ind. PERF Reappoints Two Trustees.
July 10, 2006... Indiana Governor Mitchell Daniels has reappointed two trustee members to the six member board of the $14.7 billion Indiana Public Employees' Retirement Fund (PERF). The board consists of five members appointed by the governor and one...

Cozad Asset Management Sees Greener Pastures in Farmland Assets.
July 10, 2006... When you're thinking about a hot investment idea, farming is not something that would spring into most people's minds. Stuart Meacham, chief operating officer at Cozad Asset Management, suggests that that could be a big mistake. ...

Holy Smoke!
July 10, 2006... The council of the U.K.-based London Borough of Croydon has been known for its anti-tobacco policies. It has been backing a voluntary ban on smoking in public places and had in place for 10 years a total ban on all tobacco-related investments....

Odds & Ends.
July 10, 2006... *Ken Lay, 64, founder and former chairman of Enron , died suddenly of a heart attack at his vacation home in Aspen, Colo. on July 5. Lay did not serve any of the lengthy prison term expected after being charged with fraud and conspiracy. ...

Asset Manager Settles $130M Suit.
July 17, 2006... Mario Gabelli, head Gamco Investors, have agreed to pay $130 million to settle charges of fraudulent bidding in wireless spectrum license auctions done by the Federal Communications Commission. Allegedly, one of Gabelli's companies, Lynch...

CalSTRS Adopts New Asset Allocation: Plan Plots Alternatives Investments Boost.
July 17, 2006... Under a new asset allocation plan adopted last week, the $142 billion California State Teachers' Retirement System (CalSTRS) will double the size of its alternative investment portfolio, pull back from fixed-income investments and eliminate its...

Wilshire Associates to Lose Consulting Pro.
July 17, 2006... Rosalind Hewsenian, managing director at Wilshire Associates, has announced her plans to leave both the firm and the consulting business at the end of August. "After two decades of consulting to some of the nation's largest pension funds,...

Mass PRIM Has Ties to Sudan: Executive Director Says Fund Against Divestment.
July 17, 2006... The $36.3 billion Massachusetts Pension Reserves Investment Manage- ment Board (PRIM) has admitted ties to companies that do business in Sudan. However, the plan appears to be moving in the direction of severing its ties with the region....

Report: More Changes Needed at Ohio BWC.
July 17, 2006... Just when the Ohio Bureau of Worker's Compensation (BWC) appeared to be on track to reverse the misfortunes of the infamous "Coingate" scandal, a fiduciary review of the fund's investment program completed by Evaluation Associates, says...

COPERS Terminates MacKay Shields.
July 17, 2006... The $1.2 billion City of Phoenix Employees' Retirement System (COPERS) has terminated domestic equity large-cap value manager MacKay Shields. According to the minutes from the May 25 board meeting, the investments committee-prompted by...

Mass. Fund Launches Bond Search.
July 17, 2006... Hot on the heels of its searches for mid-cap equity and timber managers, the nearly $50 million North Attleborough Contributory Retire- ment System is searching for a firm to manage a passive fixed-income mandate, confirmed Debra Bush,...

San Antonio 911 Looks for New RE Consultant.
July 17, 2006... The board of the $1.7 billion San Antonio Fire & Police Pension Fund may soon be searching for a new real estate consultant, according to the agenda from the plan's June 20 board meeting. The agenda states that the board discussed an...

San Joaquin Eyes More Real Estate.
July 17, 2006... The investment committee of the $1.74 billion San Joaquin County Employees' Retirement Association (SJCERA) will be making recommendations regarding two real estate investments to the board at its next meeting on July 28, according to Robert...

Austin ERS Selects Index Manager.
July 17, 2006... The $1.5 billion City of Austin Employees' Retirement System (COAERS) has hired Enhanced Investment Technologies (INTECH) to provide enhanced equity index services, said Stephen Edmonds, executive director of the plan. INTECH was chosen...

Santa Barbara County Chooses Finalists.
July 17, 2006... The $1.7 billion Santa Barbara County Employees' Retirement System (SBCERS) has selected finalists for its searches for a real return manager and private equity consultant, according to the agenda for the plan's July 12 board meeting. ...

Sovereign Appoints New Investment Head.
July 17, 2006... Sovereign Asset Management has named John Litzow head of institutional investments and services for the firm. Reporting to Barry Evans, chief operating officer and chief fixed-income officer, he will be responsible for expanding...

Kentucky R.S. Gets Monetary Boost.
July 17, 2006... Kentucky Governor Ernie Fletcher has reportedly announced plans to give the $15.2 billion Kentucky Retirement System (KRS) $12 million from a $136.5 million surplus in the state's general fund for fiscal year 2006. According to published...

All Hands In: Pension Fund Leaders Sign Global Pact to Promote SRI.
July 17, 2006... Led by the United Nations this spring, more than 20 of the world's largest institutional investors drafted and signed a pact to adhere to six guiding principles that would promote socially responsible investing (SRI) in their investment...

Stephens Investment Management Group Finds Success In Mid-Cap.
July 17, 2006... The way Ryan Crane, CIO at Stephens Investment Management Group (SIMG), sees it, most supposedly sophisticated investors these days are really dumbbells. That is, they and their investment advisors appear to think that by investing in...

Say a Prayer for These Guys.
July 17, 2006... The scandal involving players in Ohio continues to get more bizarre (see related story p. 2). The latest development involves, of all things, a Roman Catholic Mass Card. Michael Lewis, a broker who has pleaded not guilty to bribing...

MLIM Starts Lay-Offs.
July 24, 2006... Merrill Lynch Investment Managers has laid off Neal Howe, managing director and head of consultant relations, according to published reports. Three members of Howes investment consulting team-managing directors Peter Schmole, Joe Fergus,...

New Jersey Eyes External Money Managers.
July 24, 2006... The $72 billion New Jersey Division of Investment (NJDI) was deliberating on the idea of hiring its first external money managers at IMWs press time. Further details regarding the move were scant however, as Mark Purkiss, spokesman for the...

Maryland Plan Looks for Non-U.S. Equity.
July 24, 2006... The $481 million Maryland National Capital Park and Planning Commission Employees Retirement System has launched a search for a core non-U.S. equity manager to oversee a $25 million mandate. Further details regarding the search were scant,...

Merced to Hunt for Small-Cap Equity Manager.
July 24, 2006... The board of the $385 million Merced County Employees Retirement Association (MCERA) is conducting a search for a small-cap international equity manager, said Maria Arevalo, the plans administrator. The board approved a preliminary search...

CalPERS Looks for Long/Short Managers.
July 24, 2006... The $210 billion California Public Employees Retirement System (CalPERS) has issued an RFP for U.S. equity long/short managers to be part of a spring-fed pool of managers. According to the RFP, the fund wants to augment its total portfolio...

ICERS Picks Emerging Markets Finalists.
July 24, 2006... The board of the $308 million Imperial County Employees Retirement System (ICERS) has selected finalists for managers in its new emerging markets allocation. The new investment stems from an educational session at the boards meeting in...

NM Eyes Changes to Bond Portfolio.
July 24, 2006... The investment committee of the $11.5 billion New Mexico Public Employees Retirement Association (PERA) recommended several changes to the plans fixed-income allocation at its July 11 meeting, said Robert Gish, director of investments. The...

Texas TRS Approves New Investments.
July 24, 2006... At a July 14 board meeting, the $100 billion Teacher Retirement System of Texas (TRS) approved the recommendations of its alternative investment committee, resulting in four new investments. Howard Goldman, spokesman for TRS, said that the...

OCERS May Change Asset Allocation.
July 24, 2006... The $5 billion Orange County Employees Retirement System (OCERS) could soon change its asset allocation based on the recommendations of its consultant, Callan Associates. According to documents on the funds Web site, Callan presented an...

Los Angeles Fund May Hire For Private Equity.
July 24, 2006... The $13.5 billion Los Angeles Fire & Police Pension System could invest in two additional private equity funds, if it follows the recommendations of general manager, Michael Perez. According to a report prepared by Perez for the July 20...

Credit Suisse Hires For Indiana Fund.
July 24, 2006... Credit Suisse has hired Curt Rossman to head its new Indiana office and to oversee the Indiana Investment Fund I. He will work closely with the $15 billion Indiana Public Employees Retirement Fund (PERF) on the effort. The fund concentrates...

Some Call Soft Dollar Guidance Weak.
July 24, 2006... In an effort to leave less to the imagination, members of the Securities and Exchange Commission on July 12 unanimously approved the first set of soft dollar guidelines issued in 20 years. While some championed the guidelines as a boon to the...

Private Equity Strong in Second Quarter: Investors Find Comfort in Asian Markets.
July 24, 2006... Mega-funds and international investments spurred a boom in the private equity markets during the first half of 2006and the pace is not likely to slow down before year-end. During the first half of the year, 73 buyout groups raised $54.4...

Knott Capital Aims to Preserve Capital.(Interview)
July 24, 2006... Knott Capital is determined to be a leader and not a follower in the large-cap core arena. I think that its fairly easier, especially in the large-cap space, to go with the herd, said CEO and Principal Michael Barron, who oversees the...

Correction/Clarification.
July 24, 2006... In the July 17 Investment Manager Profile on Stephens Investment Management Group (SIMG), IMW incorrectly referred to the firms investment strategy as a dumbbell approach. CIO and portfolio manager Ryan Crane was referring to a barbell...

Odds & Ends.
July 24, 2006... *James Hirschmann has been appointed chief operating officer of Legg Mason. Hirschmann previously served as CEO of Western Asset Management, Legg Masons largest subsidiary. Raymond Mason will retain his position as chief executive and chairman...

Goldman Sachs Seeks to Sack Site.
July 24, 2006... There typically arent any visible connections between the investment and porn industries. The occasional times that there are, its usually when a fund is debating ridding any possible pornography ties to their investments. It is...

Industry Organizations Form Joint Venture.
July 31, 2006... The members of the Securities Industry Association (SIA) and the Bond Market Association (BMA) have voted to merge into a new group that will be called the Securities Industry and Financial Markets Association. The merger should be...

Two on Watch at Connecticut Trust Funds.
July 31, 2006... The $21 billion State of Connecticut Trust Funds has placed Morgan Stanley Investment Management and Merrill Lynch Investment Management (MLIM) on watch, according to the fund's Web site. Susan Sweeney, CIO for the fund, directed further...

Ohio BWC Adopts New Asset Allocation.
July 31, 2006... The Ohio Bureau of Workers' Compensation (BWC) has approved a revised asset allocation that would allow equity investments, confirmed Jeremy Jackson, spokesman for the fund. At the Workers' Compensation Oversight Commission (WCOC) meeting...

Research Spending on the Rise: SEC Guidelines Create Business Opportunities.
July 31, 2006... Now that the Securities and Exchange Commission guidelines are set, experts predict a resurgence in soft dollar spending and service companies see an opportunity to help firms navigate the safe harbor. Cautious of compounding the...

Waltham Looks at Fund-of-Funds.
July 31, 2006... The $150 million City of Waltham Contributory Retirement Plan has issued an RFP for private equity and venture capital investment managers. Joseph Juppe, administrator of the Massachusetts plan, could not be reached for comment. However,...

Franklin Hunts for International Equity.
July 31, 2006... The $26 million City of Franklin Employees' Pension Plan is searching for an international equity manager. Further details regarding why the fund decided to launch the search could not be obtained by press time, however. Russell Truell,...

LACERA Looks for PE Consultant.
July 31, 2006... The $34 billion Los Angeles County Employees' Retirement Association (LACERA) has issued an RFP for a private equity consultant for its $1.98 billion portfolio. According to the RFP, the portfolio includes acquisitions, distressed debt,...

Illinois SURS Looks for Investment Pro.
July 31, 2006... The $14.2 billion State Universities Retirement System of Illinois (SURS) is looking for an investment officer to fill a newly created position that focuses on the plan's Manager Development Program (MDP). The investment officer would...

LA Utility Hires Growth Managers.
July 31, 2006... The $6 billion Los Angeles Department of Water and Power Retirement Plan has selected domestic equity firms Paradigm Asset Management and NorthPointe Capital to oversee an account originally managed by BNY Asset Management (BNY), said Sangeeta...

Penn SERS Expands Portable Alpha.
July 31, 2006... The board of the $30 billion Pennsylvania State Employees' Retirement System (PSERS) has approved an expansion of the plan's use of portable alpha strategy to enhance returns, said Robert Gentzel, spokesman for PSERS. Since 2002, the plan...

Arizona R.S. Hires for Long/Short Equity.
July 31, 2006... The nearly $21 billion Arizona State Retirement System (ASRS) has hired Jacobs Levy Equity Management to oversee a long/short equity account of about $200 million, said Gary Dokes, CIO of ASRS. He explained that the board is now looking for...

Sacramento Selects Large-Cap Manager.
July 31, 2006... The board of the $5.1 billion Sacramento County Employees' Retirement System (SCERS) has selected INTECH to manage a $120 million domestic equity large-cap growth portfolio, said Jeff States, the California plan's CIO. INTECH was one of...

San Antonio Wraps Up Portable Alpha Search.
July 31, 2006... The $1.7 billion San Antonio Fire & Police Pension Fund heard numerous recommendations from its investment committee at a July 25 meeting. According to the agenda, the fund interviewed prospective portable alpha managers, American Broad...

Indiana Invests in Private Equity Fund.
July 31, 2006... The $14.5 billion Indiana Public Employees' Retirement Fund (PERF) has invested $125 million in the Lindsay, Goldberg, & Bessemer's Fund II (LGB), said Shawn Wischmeier, CIO of the plan. LGB is a private equity firm that focuses on closely...

Colorado PERA Heads Toward Recovery.
July 31, 2006... The Colorado Public Employee's Retirement Association (PERA) is inching its way back up to fully-funded status. At the end of 2005, the fund was able to meet 73.3% of its liabilities as compared to a 70.6% funded status at the end of 2004....

Conestoga Capital Advisors Does Big Business in a Small-Cap Way.
July 31, 2006... They're celebrating at Conestoga Capital Advisors. The Radnor, Pa.-based investment firm, which specializes in small-cap companies, just finished its first five years in business, surpassing its goal of $250 million under management. "Our...

Odds & Ends.
July 31, 2006... *Evercore Partners has hired Gil Ha as a senior managing director, where he will be responsible for the firm's corporate advisory business. Prior to joining Evercore, Ha was a managing director with Rohatyn Associates. *Russell Investment...

The Devil Made Them Do It.
July 31, 2006... The former president and legal counsel of the Baptist Foundation of Arizona (BFA), William Crotts and Thomas Grabinski, respectively, have been found guilty of three counts of fraudulent schemes and one count of knowingly conducting an illegal...