Greystone tells Sarasota firefighters’ pension board portfolio has positive alpha; trustees review international manager options

Greystone Consulting presented market and manager performance to the Sarasota City Firefighters Pension Plan Board of Trustees on Feb. 25, telling trustees the fund has achieved a positive risk-adjusted return and outlining a search of international managers including Lazard.

The presentation, led by Scott of Greystone with market commentary from TJ, placed recent gains in context: Greystone showed multi-year S&P 500 returns above long-term averages and described a concentration in large-cap, AI-linked names that has widened dispersion in small and mid-cap performance. Scott said the fund overall is reaching its target on a risk-adjusted basis, noting, "We still have a positive alpha, which means on a risk adjusted basis, we're beating it." (Greystone)

Why it matters: the board oversees roughly $180 million in plan assets and must balance return objectives with fiduciary duties. Greystone recommended managers be reviewed by formal searches rather than immediate replacement; trustees repeatedly framed searches as tools for diligence, not automatic changes.

Key points from the presentation and discussion: - Market and strategy: TJ said the S&P 500 posted strong recent returns and that fixed-income yields have normalized, creating a constructive environment for core managers while increasing short-term volatility in growth and AI-exposed names. - Manager performance: Scott walked trustees through manager-level metrics (alpha, up/down capture, R-squared) and stressed differences between cap-weighted and equal-weighted benchmarks as drivers of recent performance. - International manager search: Greystone reviewed Lazard and other candidates as part of a manager-search book; Scott noted Lazard’s lower volatility but mixed long-term alpha record and framed the search as a comparative exercise. - Succession and due diligence: Scott reported Sawgrass announced a planned June retirement for portfolio manager Marty Leprade; trustees agreed to invite Sawgrass in before June to review succession and continuity plans. - Private markets: Greystone described private credit and private equity mechanics; trustees discussed private credit as a possible income source but flagged illiquidity and statutory limits for a closed plan that spends roughly $1.3 million monthly.

Trustee reaction and next steps: Trustees asked questions about fees, benchmark choice and manager behavior across cycles; Greystone recommended targeted searches remain an information-gathering step. Several trustees said they preferred keeping a conservative allocation unless a compelling long-term case emerged. Greystone will provide additional detail on the Lazard search and follow up on Sawgrass succession materials.

The consultants emphasized that searches do not equal recommendations to change managers; trustees will schedule manager presentations (Sawgrass is expected in April) and consider searches or passive alternatives only after additional due diligence.