Fresno Pension Cuts Ties With Blackstone

Apr 9 2010 | 1:20am ET

In Fresno, Calif., common sense triumphs over captains of industry. Common Sense Investment Management, that is, which beat out the Blackstone Group for the county’s shrinking hedge fund allocation.

The Fresno County Employees’ Retirement Fund has decided to redeem its $15 million investment with Blackstone Alternative Asset Management this summer, handing the money instead to Portland, Ore.-based Common Sense, which it hired in June. The move leaves the pension’s entire hedge fund allocation with just two firms, Common Sense and Grosvenor Capital Management, also hired in June.

“It did not make sense to leave the $15 million mandate we had with them,” the pension’s retirement administrator, Roberto Pena, told HFM Week. Blackstone had bid for the fund of hedge funds mandate, but lost to Common Sense and Grosvenor.

Aetos Capital and EnTrust Capital Management were also in the running, although the latter was disqualified over its due-diligence policy.

The Fresno plan last year slashed its hedge fund allocation from 9% to 4% in response to market turbulence.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note