The $800 million Tulare (Calif.) County Employees Retirement Association has bolstered its allocations to private equity and hedge funds. David Kehler, retirement administrator, said that the board voted to bump private equity up to 9% from 5% and hedge funds to 9% from 5% on June 24. He said that he expects to add managers or increase exposure to existing managers.
The board approved the new asset allocation in order to reach the fund’s 7.9% target rate of return, Kehler said. He also noted that the new asset mix comes on the heels of a recent asset allocation study conducted by general consultant Summit Investment Strategies.
To fund the moves, large-cap domestic equities were reduced to 20.5% from 23% and real estate was reduced to 9% from 10%. The fund does not have a set timeline or priority list for which searches will take place first but Kehler expects a final decision in approximately six months. He does not anticipate any manager terminations as a result of the new allocation.
This article was originally published in Alternative Investment News.