San Diego To Pre-Approve Hedge Funds, Private Equity Firms

Mar 23 2011 | 11:18am ET

The San Diego County Employees' Retirement System is set to give its investment staff more freedom to increase its alternative investments allocation by pre-approving existing managers to receive more money without board approval.

The proposed "approved managers list" includes seven private equity funds and seven hedge funds that the $7.9 billion pension already invests with, HFMWeek reports. The move, expected to be approved by the plan's board, will "give the flexibility to negotiate terms" and "to be nimble as opportunities present themselves," Lee Partridge, CEO of Salient Partners and SDCERA's outsourced chief investment officer, explained.

Under the plan, pension staff would be permitted to invest up to 2% in any of the manager's funds up to 5% in each firm overall. The pre-approval list is part of a larger plan by SDCERA to increase its hedge fund portfolio.

The approved hedge fund managers would be BlackRock, Brevan Howard Asset Management, Bridgewater Associates, BlueMountain Capital Management, Carlson Capital, UBS O'Connor and Graham Capital Management.

In addition to the 14 hedge funds and private equity firms, the pre-approval list includes three real estate funds and two global infrastructure funds.

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