CalPERS and Strategic Investment Group Select Golden Capital Management to Manage $200 Million

Business Wire, Dec 21, 2000

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Dec. 21, 2000

The California Public Employees' Retirement System (CalPERS) and Washington, D.C.-based Strategic Investment Group announced today that they have selected Golden Capital Management to manage $200 million of U.S. equity as part of CalPERS ' innovative Manager Development Program (MDP). The pension fund and Strategic will also make an equity investment in the firm.

Golden Capital Management, headquartered in Charlotte, North Carolina, is the third money manager chosen to participate in CalPERS' MDP -- an effort by the pension fund to tap new and emerging money management firms to boost the System's investment returns.

"Young and successful firms like Golden Capital Management are the future of the money management industry," said Michael Flaherman, Chair of CalPERS Investment Committee. "With CalPERS' assets and Strategic Investment Group's support, Golden can help us realize superior returns while becoming a significant player in the institutional investment industry."

CalPERS' MDP was established in 1999 and has up to $4 billion committed in funding. The program seeks to achieve superior investment returns while providing opportunities to new and emerging money managers that may not have the long-term track record and marketing clout to compete against institutional giants.

CalPERS and its partner Strategic Investment Group will also provide emerging firms with assistance in business management and development. In addition to its investment returns, the pension firm expects to realize profits from its equity positions upon exit.

The investment in Golden Capital Management will increase the firm's assets under management to nearly $400 million. Greg Golden, CFA, President of Golden Capital Management noted that, "the partnership with CalPERS and Strategic Investment Group will give the firm critical mass across all product lines as well as underscore our credibility with institutional investors."

CalPERS is the nation's largest public fund with assets totaling approximately $170 billion. The System provides retirement and health benefits to more than 1.2 million state and local public employees and their families. For further information about CalPERS, please visit the System's web site at www.calpers.ca.gov. For information about the MDP, please visit www.2strategic.com.

Golden Capital Management, founded in March 1999, was formerly a division of Smith Asset Management Group, L.P., which will retain a minority interest in the new firm. Please visit Golden Capital Management's web site at www.gcm1.com to view more detailed information on the firm.