Rhode Island pension fund CIO to leave for private sector

BOSTON Mon Dec 17, 2012 8:29am EST

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BOSTON Dec 17 (Reuters) - The chief investment officer of Rhode Island's state pension fund, Kenneth Goodreau, will become CIO of TIG Advisors on Jan. 1, the private New York-based investment manager said.

The move is the latest in a string of departures by top U.S. pension fund executives for the private sector where salaries tend to be significantly higher than in state governments.

Goodreau helped the $8 billion state fund invest with hedge funds during his six-year tenure. He is the founder of hedge fund Knollwood Capital Management.

TIG, with about $2 billion under management, expects to launch new investment strategies when Goodreau is on board, TIG President Spiros Maliagros said in an interview. "We expect to be active this year; we are always opportunistically looking for strategies that will enhance our platform."

TIG was founded by Carl Tiedemann, a former chairman of Wall Street investment bank Donaldson, Lufkin & Jenrette. It offers clients access to customized portfolios and provides services to Wall Street portfolio managers, such as back office, compliance, risk control and investor relations.

This year, the group has backed five new managers, including a pair of former proprietary traders from Royal Bank of Canada and Bank of American who wanted to start a mortgage structured credit hedge fund.

At a time many state pension funds are underfunded and their chief investment officers face new pressures in efforts to boost returns, a handful have left for the private sector in the last 18 months.

In 2011, Raudline Etienne left the $150 billion New York State Common Retirement Fund for the Albright Stonebridge Group. Six months ago Stanley Mavromates left the $50 billion Massachusetts state pension fund to become chief investment officer of Mercer Investments.

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