NEW YORK (AFX) - The California Public Employees' Retirement System said it has committed $400 million to Breeden Partners, the activist hedge fund of former Securities and Exchange Commission Chairman Richard Breeden.
Calpers spokesman Brad Pacheco said Tuesday that the pension fund had committed the money, but couldn't immediately give additional details.
The investment comes as the much-hyped fund is still looking to raise money, helping it make headway after a 7-month delay. Breeden Partners has raised its first $500 million and has invested $100 million of that money already, Steven Quamme, manager of Breeden Capital Management LLC, said Monday. Quamme also said the fund will make the first filings about its holdings with the SEC following the close of the calendar year's third quarter, but declined to give further details or comment on the apparent delay.
A New York Times report in September 2005 said the fund was slated to launch Jan. 1, and reported that Breeden would get a 2 percent management fee and take 20 percent of profits. A spokesman for Breeden wasn't immediately available for comment.
Breeden Capital Management is registered as an investment adviser to Breeden Partners LP as well as Breeden Partners Ltd., a private fund organized as an exempted company under the laws of the Cayman Islands, according to filings with the SEC.
Breeden has considerable expertise in corporate governance, having served as an adviser to troubled companies such as Hollinger International Inc. and Fannie Mae, and as special monitor for WorldCom. He served as chairman of the SEC from 1989 to 1993, and has run his own consulting firm specializing in companies in governance distress, Richard C. Breeden & Co., since 1996.
According to filings, Breeden Capital Management, Greenwich, Conn., has seven participants so far. Breeden is chief executive, and James M. Cotter, David J. Mimran and Quamme are listed as managers. Michael Gerard Stellwagen is chief financial officer, Norman Joseph Harrison is chief compliance officer and Calpers is listed as a 'member.'
The filing shows Breeden Capital Management has $106.38 million in assets under management, all in one account, as of July 12.
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