Blackstone Alternative Asset Management has won the competition to manage $10 million for Tennessee’s third-largest city.
The firm won the fund of hedge funds mandate from the Knoxville City Employees’ Retirement Pension Fund, Pensions & Investments reports. The hire follows the termination of one of Knoxville’s fund of funds managers, Union Bancaire Privée, last year, and the reduction of its fund of funds allocation from 7% to 5%.
Knoxville fired UBP due to its exposure to the Bernard Madoff Ponzi scheme, putting some $1 million of the pension’s money at risk.
Cadogan Management continues to hold Knoxville’s other fund of funds mandate, also running $10 million.