Investment Management Weekly articles from June 2005

Investment Management Weekly archives from June 2005

Canadian Plan May Adopt New Strategies.
June 6, 2005... The $35.7 billion Ontario Municipal Employees' Retirement System (OMERS) is aiming to ensure the future health of the plan. At a recent board meeting, the fund discussed the idea of implementing a new investment strategy where the fund would...

OPERS Hunts for Emerging Markets Managers: Will More Searches Come?
June 6, 2005... The $64.5 billion Ohio Public Employees' Retirement System (OPERS) has launched a search for an emerging markets equity index manager and could also seek to add more managers to its international equity lineup, spokesman Rich Baker said last...

Missouri U. Terminates Hedge Fund Manager.
June 6, 2005... The $3 billion University of Missouri (UM) will be searching for a new alternatives investment manager to replace a recently ousted firm, said Nikki Krawitz, VP of finance and administration. At a recent board meeting, the fund decided to...

Haertzen Resigns from Idaho Endowment Fund.
June 6, 2005... Matthew Haertzen, manager of investments at the $1.2 billion State of Idaho Endowment Fund, is said to have suddenly resigned from the fund, but officials at the plan are remaining mum on the reasons for his departure. Haertzen was hired in...

Empire State to Invest In Northern Ireland.
June 6, 2005... The $120 billion New York State Common Retirement Fund made moves last week to invest approximately $6.8 million in a Northern Irish venture capital fund with the Belfast, Ireland-based private equity firm Crescent Capital. "We've wanted...

Calif. Fund Selects Bond Manager.
June 6, 2005... The $2.4 billion Ventura County Employees' Retirement Association recently added Loomis Sayles & Company to its money manager roster, said Van Perris, retirement administrator. The firm will oversee a $60 million active fixed-income account...

Sonoma Selects RREEF for Real Estate.
June 6, 2005... The $1.3 billion Sonoma County Employees' Retirement Association has hired RREEF as its new real estate manager to oversee a $25 million open-end, value-added portfolio, said Gary Bei, plan administrator. Bei declined to name the other...

Oakland 911 Selects For Small-Cap and Int'l.
June 6, 2005... The $615 million Oakland Police and Fire Retirement System has completed its search for managers to oversee allocations to small-cap and international equity accounts for the fund, said Teir Jenkins, the accountant for the California plan. ...

Loyola College Hires PENN Capital.
June 6, 2005... The investment board of Loyola College's $147 million endowment fund has hired PENN Capital Management to manage a $1 million small-cap opportunistic equity account. Full details of the hire could not be determined, as repeated calls to...

Lehman Promotes McDade.
June 6, 2005... Lehman Brothers has appointed Herbert McDade III global head of its equities division, replacing Robert Shafir, who is taking a leave of absence to spend time with his family. Shafir, who had been at Lehman since 1990, headed the firm's...

PBGC Reports Record Losses; $14B in Claims From 2000-2004.
June 6, 2005... The Pension Benefit Guaranty Corporation (PBGC) has suffered unpredicted losses in the years between 2000 and 2004. According to the agency's Pension Insurance Data Book, claims from failed single-employer pension plans amounted to about...

Hedge Funds Flying High As Assets Top $1 Trillion.
June 6, 2005... Hedge funds are on the rise and making it into the mainstream, according to the latest survey from the Hennessee Hedge Fund Advisory Group. The 11th annual Hennessee Hedge Fund Manager Survey found that hedge fund assets have soared 27% in...

SEC's Donaldson To Step Down Later This Month.
June 6, 2005... In a surprise move, Securities and Exchange Commission Chairman William Donaldson said late last Wednesday that he will step down on June 30, prompting President Bush to nominate California Republican Christopher Cox as his replacement. ...

Levanoni: Currency a Good Source for Alternative Investments.
June 6, 2005... Diversification and increased returns has long been something that institutional investors look for when considering investment decisions. Dori Levanoni, co-director of global derivatives at First Quadrant, maintains that pension funds,...

Odds & Ends.
June 6, 2005... *Milwaukee City Employees' Retirement System hired Earnest Partners to manage $165 million in active domestic mid-cap core equities. Funding came from the termination of Brown Capital Management. Mercer Investment Consulting is the plan's...

Mass PRIM Shuts Out Fidelity.
June 13, 2005... The $36 billion Massachusetts Pension Reserves Investment Management Board (Mass PRIM) has announced that it would not be considering Fidelity Investments for new contracts with the fund in the near future. Citing the firm's pending...

Clients Take Action on Beleaguered MDL Capital.
June 13, 2005... MDL Capital Management's recent problems with the Ohio Bureau of Workers Compensation (BWC) and looming probe by the Ohio Attorney General's office may have signaled the alarm with some of the firm's other clients. At IMW's press time, the...

SEC Chair-to-Be Unlikely to Reverse Reforms: Experts See Cox Focusing on Bread and Butter' Issues.
June 13, 2005... While President Bush's nominee to replace outgoing Securities and Exchange Commision (SEC) Chairman William Donaldson is likely to bring a free-market, libertarian spirit to his new post, don't expect him to charge in like a bull in a china...

Amerindo on Watch in Seattle.
June 13, 2005... The $1.5 billion Seattle City Employees' Retirement System is keeping a close eye on the beleaguered Amerindo Investment Advisors, said Mel Robertson, assistant executive director. The firm, which oversees approximately $24 million in an...

Los Angeles Plans Launch Joint RFP.
June 13, 2005... The boards of the $2 billion City of Los Angeles Department of Fire and Police Pensions (LAFPP) and the $8.1 billion Los Angeles City Employees' Retirement System (LACERS) are collaborating on a search for a real estate consultant, said Barbara...

Norfolk Launches Duo Searches.
June 13, 2005... The $440 million Norfolk County Retirement Board is on the hunt for managers to oversee accounts in international and domestic equity. According to an RFP issued by the Canton, Mass.-based fund, a $27 million mid-cap growth mandate is up...

Nevada PERS Hires Investment Officer.
June 13, 2005... The $14 billion Nevada Public Employees' Retirement System has appointed Christina Cannella as the fund's new assistant investment officer, said Laura Wallace, plan CIO. Cannella, who was most recently assistant investment officer at the...

PSERS Hires Real Estate Consultant.
June 13, 2005... The $47 billion Pennsylvania Public School Employees' Retirement System has hired Courtland Partners as its new real estate consultant, said Evelyn Tatkovski, plan spokeswoman. The new hire replaces Russell Real Estate Advisors, which...

CalSTRS Gets Set to Tackle Deficit.
June 13, 2005... The trustees of the $126 billion California State Teachers' Retirement System (CalSTRS) announced that it will be taking a more aggressive stance as it moves to control the fund's $24.2 billion deficit. The fund attributes its hefty...

Mass. Turnpike Hires for Int'l Equity.
June 13, 2005... The $185 million Massachusetts Turnpike Authority Employees' Retirement System has hired Brandywine Asset Management as its new international equity manager. Tom Arcadipane, the fund's director said the search which was originally launched...

Seligman Pros Launch Firm.
June 13, 2005... Former J. & W. Seligman & Co. pros Michael Bertash and David Guy recently launched New York Capital Advisors (NYCA), Bertash told IMW last week. The Long Island, New York-based firm-which will target clients in the Taft-Hartley realm-will...

Russell Tops Manager-of-Managers List.
June 13, 2005... Cerulli Associates has deemed Russell Investment Group the largest manager-of-managers investment firm worldwide, according to its report, the Cerulli Quantitative Update: Global Multimanager Products 2005. "We're certainly pleased about...

Finke: Leveraged Loans an Attractive Fixed-Income Investment.
June 13, 2005... For institutional investors searching for fixed-income investments, leveraged loans may not be the first idea to come to mind. However, Thomas Finke, managing director at Babson Capital Management and head of the U.S. bank loan team, said...

Odds & Ends.
June 13, 2005... *Denver-based Qwest Communications has agreed to reimburse its pension plan for company expenses which totaled $99,418 according to the Department of Labor. Qwest's pension plan was in a $314 million deficit at the end of 2002. By the end of...

Ohio Fund Reveals Fees Paid On MDL Investment.
June 20, 2005... Adding to the MDL Capital Management and Ohio Bureau of Workers Compensation (BWC) debacle, it was revealed that the beleaguered firm was paid more than $700,000 in management fees by BWC for its investment in a Bermuda hedge fund. The...

Underfunding Spurs Hacking's Resignation.
June 20, 2005... Frustrations over the state of Illinois pension funding-or lack thereof-may have been impetus of James Hacking's decision to resign as executive director of the State Universities Retirement System (SURS). The state, which is home to five...

Ohio P&F Hunts for $200M Bond Manager.
June 20, 2005... The $9.6 billion Ohio Police & Fire Pension Fund is searching for a fixed-income manager to oversee a $200 million portfolio, said David Graham, spokesperson for the fund. According to Graham, the board decided to issue an RFP for a high...

Industry Pros Weigh in On Cox Appointment.
June 20, 2005... As William Donaldson's tenure as chairman of the Securities and Exchange Commission winds to a close next week, industry watchers speculate that the SEC, under Christopher Cox's leadership, could signal a turn in the tide with regard to...

Methuen Launches Small-Cap Search.
June 20, 2005... The $68 million Town of Methuen Retirement Board has initiated a search for a domestic equity manager. According to the RFP, the Mass.-based fund is searching for a firm to spearhead the investment of a $7 million small-cap core equity...

Hampden County Seeks Small-Cap.
June 20, 2005... The $175 million Hampden County Regional Retirement Board has launched a search for a manager to oversee an $18 million small-cap core domestic equity account, an official at the fund told IMW last week. Inquiries on why the board initiated...

Mass. Fund Looks for Small-Cap.
June 20, 2005... The $37 million Greenfield Retirement Board is searching for a small-cap core equity manager, according to an RFP issued by the fund. Further details regarding why the search was launched could not be ascertained, however. Officials at the...

Oregon State Seeks Real Estate Pro.
June 20, 2005... The Oregon State Treasury is searching for a real estate officer to oversee the $47 billion Oregon Public Employees Retirement System's real estate portfolio, said Kevin Max, plan spokesman. Max explained that the board initiated the search...

Louisiana Plan Hires for Small-Cap.
June 20, 2005... The $907 million City of Baton Rouge & Parish of East Baton Rouge hired Roxbury Capital Management earlier this month to oversee a $25 million small-cap growth account, said Jeffrey Yates, plan administrator. Yates said that the hire was...

DeAM Secures Sterling Heights.
June 20, 2005... Facilitating a move from passive to active management, trustees of the $105 million Sterling Heights General Employees' Retirement System, have hired Deutsche Asset Management to oversee a $26 million active fixed-income account. Rick...

Va. Fund Appoints New IAC Chair.
June 20, 2005... The Investment Advisory Committee of the $43 billion Virginia Retirement System (VRS) appointed Joe Grills as chairman. He will preside over the IAC and will aid the committee in providing sound investment advice. Grills' appointment...

Kern Capital Boosts Marketing Efforts.
June 20, 2005... New York-based Kern Capital Management, seeking to build on its $1.6 billion in assets under management, has hired Aaron Kilberg as the firm's managing director and principal of marketing and client services, a newly created position. ...

Caywood-Scholl Snags New Marketer.
June 20, 2005... RCM's high yield fixed-income subsidiary, Caywood-Scholl Capital Management, has hired VaRene Martin as an institutional marketer-a newly created position. Tim Stidham, director of institutional sales and marketing at the firm, said that...

Russell Hires Delaware Capital Management.
June 20, 2005... Multi-manager Russell Investment Group hired Delaware Capital Management for its Russell Managed Portfolios (RMP) program. Jennifer Tice, an investment officer at Russell, said that Delaware was selected because of its multi-manager...

TIAA-CREF Shareholders Demand More.
June 20, 2005... Shareholders of the $300 billion TIAA-CREF retirement plan, are demanding that plan fiduciaries implement more socially responsible measures within its $7 billion fund-created specifically for socially responsible investments-the Social Choice...

TIAA-CREF Opens West Coast Office.
June 20, 2005... TIAA-CREF has recently announced the opening of a West Coast office for the organization's real estate equity investment operation. Chris McGibbon and Derek Landry will run the real estate portfolio at the Newport Beach, Calif., office....

CalPERS Ensures Sound and Fair Investment Advice.
June 20, 2005... The $163 billion California Public Employees' Retirement System (CalPERS) announced last week that the system's board of administration would begin to uphold a new conflict of interest policy in order to guarantee that the plan's investment...

Girard: Fixed-Income to Remain Steadfast.
June 20, 2005... While the average institutional investor usually includes fixed-income as part of its asset allocation mix, lately the demand for these investments has been dealt a blow by stagnant market conditions. Thomas Girard, managing director and...

Odds & Ends.
June 20, 2005... *Third Wave Global Investors has hired Jie Ding as a senior quantitative analyst at the Greenwich, Conn.-based consulting firm. Reporting directly to Daniel Lam, her responsibilities will include cutting edge research, which will serve as an...

Citigroup, Legg Mason May Partake in Switcheroo.
June 27, 2005... Citigroup and Legg Mason are reportedly gearing up to undergo a business unit swap. In a deal worth a reported $4 billion, Citigroup would trade its $460 billion asset management business for Legg Mason's brokerage business, along with...

OPERS Launches Dual Searches in Int'l Equity.
June 27, 2005... The $64.5 billion Ohio Public Employees' Retirement System (OPERS) has launched searches totaling close to $900 million in its quest for international equity managers. According to an RFI issued by the fund, OPERS will hire one to two...

San Joaquin Reviews Capital Guardian.
June 27, 2005... The board of the $1.7 billion San Joaquin County Employees' Retirement Association is keeping close tabs on its international equity manager-Capital Guardian Trust Company-for "one more quarter," as a result of poor performance on a $186...

San Jose Plan to Embark on Real Estate Search.
June 27, 2005... The $1.1 billion Federated City Employees' Retirement System of San Jose is gearing up to initiate an RFP for a manager to oversee a commingled real estate account of an undetermined size. Specifics of the potential search could not be...

El Paso County Set to Hire New Manager.
June 27, 2005... The $175 million El Paso County Retirement Plan is gearing up to sign contracts with New Star Asset Management to oversee an international core/growth equity account valued at approximately $22 million, said David Klemmer, plan administrator....

Mo. Board Rebuffs Steelman's Proposal.
June 27, 2005... Trustees of the $5.8 billion Missouri State Employees' Retirement Fund have decided not to divest from Arab Bank-an organization that has been accused of aiding and having ties to terrorism. Last month, Missouri State Treasurer, Sarah...

Texas Cops Narrows Consultant Search.
June 27, 2005... The $350 million City of Austin Police Retirement Fund has started the process to replace its former consultant, Monroe Vos Consulting Group, said Sampson Jordan, plan administrator. Last December, the board and the consultant decided to...

Commonfund Seeks Consultant Specialist.
June 27, 2005... Commonfund has initiated a search for a new director of consultant relations to replace a recently vacated position. John Griswald, senior VP at Commonfund, confirmed the firm's search, but declined to name the individual that previously...

Industry Pros Launch Alternatives Firm.
June 27, 2005... Catering to the needs of institutional investors and their increased desire for alternative investment vehicles, James Hedges, founder of hedge fund advisory firm LJH Global Investments, along with two other industry veterans have launched...

New Indictment in Chapman Debacle.
June 27, 2005... The seemingly ongoing case of fraud involving money manager Nathan Chapman and his firm Chapman Capital Management has spawned the another recent indictment. Last week, Daniel Baldwin, Jr., a senior VP and stockbroker at the firm, was...

Wilmington Adds Head of Derivatives.
June 27, 2005... Wilmington Trust Investment Management (WTIM) has hired Stephen Davenport to join its investment staff as head of derivatives, a newly created position. Davenport, who started in the new position on May 23, will be responsible for...

Clarification/Correction.(Correction Notice)
June 27, 2005... In last week's story titled "CalPERS Ensures Sound and Fair Investment Advice," it could have been interpreted that Wilshire Associates was accused of making biased recommendations. (IMW 6/20) This is not the case and IMW regrets the error. ...

SEC Commishes to Vote On Indy Chair Rule...Again.
June 27, 2005... So much for riding off into the sunset. The Securities and Exchange Commission last week scheduled a June 29 vote on a controversial governance rule that is likely to end Chairman William Donaldson's tenure on a sour note. Donaldson is...

CalPERS to Invest in International Bonds.
June 27, 2005... The $186 billion California Public Employees' Retirement System is seriously considering investing in international bonds-specifically of the Russian persuasion. Until recently, CalPERS was allowed to invest in foreign bonds that were...

SCERA Moves To Increase Contributions.
June 27, 2005... The board of the Sacramento County Employees' Retirement System has made a recommendation for a $40.6 million increase in pension contributions and on June 21, Sacramento County supervisors had no other choice but to approve the proposal. The...

Tompkins: Lift-Outs Can Aid in Solid Performance.
June 27, 2005... In today's markets, where money managers strive to achieve the best returns, having the best team in place can make the difference. Over the past year and a half the tenuous markets have prompted investment management firms to find...

Odds & Ends.
June 27, 2005... *AGF Funds Inc. recently announced the hire of Gary Wing as senior VP of Institutional Investment Services. It is a newly created position where he will be responsible for driving institutional sales of AGF's institutional investment management...