Key Takeaways
- • LACERA, the $93.9 billion Los Angeles County Employees' Retirement Association, has appointed Cheyne Capital Management to manage a dedicated $750 million multi-asset credit hedge fund strategy through a managed account structure.
- • The appointment aligns with LACERA's 13% target allocation to credit strategies, positioning this mandate as a significant component of the pension fund's alternative credit exposure.
- • Cheyne Capital will manage the strategy as a dedicated account rather than a commingled fund, providing LACERA with customized portfolio construction and direct oversight of its $750 million investment.
- • This mandate reflects institutional investor appetite for specialized credit hedge fund managers, particularly among large public pension funds seeking diversified fixed-income and credit exposure in a complex macroeconomic environment.
Summary
The Los Angeles County Employees' Retirement Association has formalized a substantial commitment to alternative credit investing through the appointment of Cheyne Capital Management as manager of a $750 million dedicated managed account. The appointment underscores LACERA's strategic positioning within its broader asset allocation framework, as the pension fund maintains a 13% target allocation to credit strategies.
The structure of this mandate—established as a dedicated managed account rather than investment in a commingled fund—provides LACERA with direct customization of portfolio construction and enhanced transparency into Cheyne Capital's multi-asset credit strategy. This arrangement is characteristic of how large institutional investors, particularly public pension funds with substantial capital bases, secure tailored portfolio management that aligns with specific risk tolerances and return objectives.
Cheyne Capital's selection reflects the firm's reputation within the alternative credit space and its capability to manage multi-asset credit strategies. For LACERA, the appointment represents a meaningful allocation to credit hedge fund exposure, consistent with the pension fund's diversification objectives across alternative investments.
The transaction demonstrates continued institutional demand for specialized credit managers among large U.S. public pension systems, particularly as these entities navigate portfolio construction in an environment requiring sophisticated credit analysis and dynamic positioning across fixed-income markets.
The structure of this mandate—established as a dedicated managed account rather than investment in a commingled fund—provides LACERA with direct customization of portfolio construction and enhanced transparency into Cheyne Capital's multi-asset credit strategy. This arrangement is characteristic of how large institutional investors, particularly public pension funds with substantial capital bases, secure tailored portfolio management that aligns with specific risk tolerances and return objectives.
Cheyne Capital's selection reflects the firm's reputation within the alternative credit space and its capability to manage multi-asset credit strategies. For LACERA, the appointment represents a meaningful allocation to credit hedge fund exposure, consistent with the pension fund's diversification objectives across alternative investments.
The transaction demonstrates continued institutional demand for specialized credit managers among large U.S. public pension systems, particularly as these entities navigate portfolio construction in an environment requiring sophisticated credit analysis and dynamic positioning across fixed-income markets.
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