San Bernardino County (Calif.) Employees' Retirement Association's investment committee agreed to recommend that the board terminate Tricadia Credit Strategies and end dealings with two York Capital Management funds, confirmed Michael Tamony, spokesman for the $9.7 billion pension fund.
Tricadia Capital Management managed approximately $36.2 million for SBCERA as of April 30 in Tricadia Credit Strategies, a multistrategy credit hedge fund. The investment committee recommended termination because of performance issues.
SBCERA approved a commitment of $100 million to the York Structured Credit Opportunities Fund in January; it will be rescinded. During negotiations, the pension plan's investment committee staff found an unfavorable key term to SBCERA in the fund documents, and a resolution has not been reached, meeting minutes show.
The committee also agreed to redeem SBCERA's $157.3 million interest in York's Global Credit Income Fund due to a similar term in its current contract with that fund.
These actions will be presented to the board for approval at its Aug. 2 meeting.
A spokeswoman from Tricadia declined to comment. A spokesman from York Capital could not be immediately reached for comment.