Thursday, March 25, 2010

Goldman, Pru dumped by Nevada's pension fund (GS, PRU)

The WSJ reported earlier today that the Nevada Public Employees' Retirement System has dumped two of its managers, Prudential and Goldman Sachs, for lack of performance (That's what She Said!) :

Goldman, which managed $600 million for the pension fund, fell below the fund's index by just over 1% for more than two years, Mr. Lambert said. He said there has been a lot of turnover among the managers, but he said performance was the main reason for the fund's decision.
The unit of Prudential, Quantitative Management Associates, handled $500 million in investments for Nevada. Mr. Lambert said the firm fell below the fund's performance target by more than 4% in the last two years.
Goldman and Quantitative Management, both hired in 2007, declined to comment.

Quantitative Management Associates runs about $70billion, according to their website.

Their investing strategy:
"Quantitative Management Associates (QMA) combines analytical discipline and seasoned judgment to deliver customized investment solutions."
Ahh, nothing like the "seasoned judgement" that only career academics can provide! In layman's terms, these guys build a model for stock-picking, back-test it, then let it ride...

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