Chicago Teachers Pension Fires K2, Mesirow

Nov 29 2012 | 12:42pm ET

The Chicago Public School Teachers' Pension and Retirement Fund has gone through with a plan to slash its hedge fund allocation.

The $9.7 billion pension terminated the two funds of hedge funds with the largest mandates, K2 Advisors and Mesirow Advanced Strategies, Pensions & Investments reports. The two firms managed a combined $149.2 million.

Teachers' is still mulling the future of Pluscious Management, which runs $25.3 million for the pension. Prior to presentations by K2 and Mesirow last week, pension executive director Kevin Huber said that Pluscious "has a different liquidity profile and therefore is not presenting tomorrow."

Teachers' did not specify what it would do with the proceeds of the redemptions. But Huber said prior to the firings that the move was being made "in order to assist with cash needs" and cited liquidity concerns with K2 and Mesirow.


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