28/07/2010 Author: Kapila Gohel

Louisiana pension fund switches FoHF manager

The $1.1bn Louisiana Municipal Police Employees’ Retirement System (Lampers) has dropped Cadogan Management as one of its two new funds of hedge funds (FoHF) allocations as it moves to replace its direct portfolio.

In April last year, Lampers chose Cadogan Management as one of its two FoHF allocations, however, Kathy Bourque, director of the retirement system, revealed that EnTrust Capital has now replaced Cadogan Management. Lampers has funded Permal Group and EnTrust Capital with mandates of $20m each.

Bourque declined to reveal why the change was made, however, she told HFMWeek last April that the pension would only consider ‘transparent’ hedge funds. Furthermore, Lampers delayed the funding yet again in July 2009 as its new investment consultant, Mercer, carried out further due diligence on Permal and Cadogan.

Lampers entered FoHFs as a transition from direct investments. Its direct managers (which have now been liquidated) included Owl Creek, AQR, Och Ziff and Stark Investments. The pension has $49.7m invested in hedge funds, $20m in the newly hired managers and $9m in an unnamed strategy.