Friday, 30 September 2016
Last updated 8 hours ago
Jun 27 2012 | 11:06am ET
A Texas police and fire healthcare fund has launched a search for hedge funds to fill its much-reduced allocation to the asset class.
The $210 million San Antonio Fire & Police Retiree Healthcare Fund fired its two hedge fund managers, Clovis Capital Management and Kingdon Capital, in February. Those two funds managed 14% of the fund's assets; the new hedge fund or funds will manage just 4%, or $8.4 million, HFMWeek reports.
San Antonio is looking for multi-strategy funds to fill the new allocation.
The new search isn't the only place where San Antonio is cutting hedge funds. The Healthcare fund is gradually redeeming its investment—part of its absolute return allocation—with Silver Creek Capital. When that 4% is withdrawn, the fund's total hedge fund investments will be just 6%—down from 20%.