Miami Firefighters' and Police Officers' Retirement Trust hired Waycross Partners to run about $50 million in active domestic large-cap core equities.
The $1.6 billion pension fund's board approved the hiring at its meeting on Thursday, said Dania L. Orta, administrator, in an email.
The pension fund conducted a shortlist search because investment consultant Meketa Investment Group recommended adding an additional active large-cap manager with a consolidated portfolio with significant tracking error vs. the index. This strategy "has a good opportunity to produce strong performance if their positions outperform the few large positions driving index returns," according to a presentation included with Thursday's meeting materials.
The other finalist was Parnassus Investments.
Funding will come from a reduction of the passive domestic large-cap equity portfolio managed by Northern Trust Asset Management, previously the pension fund's sole large-cap manager, leaving it with approximately $300 million in assets.
As of June 30, the pension fund's actual allocation to domestic equities was 31%; the target is 32%.
Meketa Investment Group assisted with the search.
