NYSIF Successfully Launches $150 Million Emerging Manager Program

August 26, 2010

The New York State Insurance Fund (NYSIF) is pleased to announce that it has hired Legato Capital Management and Attucks Asset Management, LLC to manage $150 million in equity assets as part of its new Emerging Manager program initiated by the NYSIF Board of Commissioners.

Legato Capital Management and Attucks Asset Management, LLC, both Minority and/or Women Owned Business Enterprises (M/WBE), will serve as Manager-of-Managers to construct and administer separately managed accounts consisting of eleven (11) emerging managers selected to advance NYSIF’s investment objectives and performance returns in large cap growth accounts. Eight of the 11 emerging managers selected to participate are African-American, Asian, Native-American and/or women owned business enterprises.

The 11 emerging managers selected are Apex Capital Management, Denali Advisors, The Edgar Lomax Company, Hanseatic Management Services, Herndon Capital Management, Mar Vista Investment Partners, Phocas Financial Corporation, NorthPointe Capital, Sustainable Growth Advisers, TWIN Capital Management and Zevenbergen Capital Investments.

NYSIF Chief Deputy Executive Director Francine James highlighted the extraordinary success NYSIF has achieved in “initiating its first-ever Emerging Manager Program while continuing to expand opportunities for MWBE businesses through greater inclusion in the State procurement process – especially as it pertains to the financial services sector.”

Ms. James further noted the $150 million funding to the MWBE Manager-of-Managers is just the latest initiative utilized by NYSIF to address the need for greater opportunity identified by Governor David A. Paterson’s Executive Order No. 10 issued on June 8, 2008, which established the MWBE task force and comprehensive multi-year study by the New York State Department of Economic Development released in April, 2010 – “The State of Minority and Women Owned Business Enterprise: Evidence from NY.” Governor Paterson incorporated those recommendations into his program bills which were signed into law on July 15, 2010, that will assist in establishing a more level playing field for Minority and Women-Owned Business Enterprises in New York State’s financial services sector.

Chairman of the NYSIF Board of Commissioners Robert Hurlbut stated, "The new Emerging Manager program strongly backs the Governor’s initiative, and this is one of many initiatives NYSIF is conducting to increase MWBE participation in the procurement process.” NYSIF’s Chief Investment Officer Miriam Martinez added that “the Emerging Manager program will keep the Fund competitive and well-positioned to attract talented emerging managers while continuing to offer promising opportunities for minority-and women-owned investment management firms.”

NYSIF Commissioner and Investments Committee Chairman David Ourlicht, who guided NYSIF in establishing this program stated, “On behalf of our Board of Commissioners, I would like to welcome Legato Capital Management and Attucks Asset Management, LLC, into the NYSIF investment management team and look forward to working with them to ensure the successful implementation of our $150 million Emerging Manager program.”

The New York State Insurance Fund is a non-profit agency of the State of New York that was created as part of the Workers’ Compensation Law of 1914. NYSIF is a competitive insurance carrier that sells workers’ compensation insurance to any employer doing business in New York State. Approximately 180,000 employers hold NYSIF workers’ compensation policies while more than 61,000 have active disability benefits policies.