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October 11, 2005 at 08:00 PM
SACRAMENTO, Calif. (HedgeWorld.com)–Raising its hedge fund stakes, the California Public Employees’ Retirement System is launching the second round of its emerging manager program with the inclusion of funds of hedge funds managers.
As part of CalPERS’ Manager Development Program II, the pension fund’s investment committee decided to include funds of hedge funds alongside long-only investments. The emerging manager program lets a pool of advisors allocate assets to specific funds and then negotiate an additional equity stake in the underlying management firm.
Firms selected to participate as advisers are: Strategic Investment Management, Arlington, Va.; Progress Colchester Ventures LLC, San Francisco; The Rock Creek Group, Washington, D.C.; Bear Stearns Asset Management, New York; and Legato Capital Management, San Francisco.
Each adviser brings a different level of expertise that may enhance the US$196 billion pension fund’s expanding hedge fund program, which slated to eventually total US$2 billion. For example Strategic Investment Management is a specialist in the incubation and structuring of deals with emerging managers, as seen in its previous participation in the funds Manager Development Program I.
Progress also participated in the initial manager development program, having less success in manager analysis and deal selection, but officials decided to keep the firm in the new investment program, according to officials.
