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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Versum Materials (VSM), with a market capitalization of $2.7 billion, enables chipmakers to achieve higher performance at lower cost with enhanced reliability. Versum is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets.