The City of Manchester (N.H.) Employees' Contributory Retirement System seems to have it in for its hedge fund managers.
Earlier this year, the $154 million public pension fired Attalus Capital, blaming "lackluster" performance and "key-person risk." Now, Gottex Fund Management may be on the chopping block.
The Manchester pension is reviewing its Gottex investment after its investment consultant, NEPC, stopped recommending the firm to clients, HFMWeek reports. Despite NEPC's "neutral rating on them for existing investors," Manchester does not plan to cut ties with Gottex. At least not yet.
"If [assets under management] should suddenly begin to increase in correlation with a decline in the rate of return… the question of replacing the manager would need to be revisited," the pension's minutes from its June meeting show.
Last month, Manchester hired Permal Group to replace Attalus.