Milwaukee Employes' Retirement picks 3 hedge fund-of-funds finalists

City of Milwaukee Employes' Retirement System picked Corbin Capital Partners, Lighthouse Investment Partners and UBS Alternative and Quantitative Investments as finalists in a search for a hedge fund-of-funds manager to run $100 million, confirmed David M. Silber, chief investment officer of the $5 billion pension fund.

The allocation would be CMERS' first to hedge funds. The pension fund's investment committee plans to meet Thursday to interview representatives of the three firms and expects to make a hiring decision. CMERS plans to hire one manager.

Callan Associates, the pension fund's investment consultant, is assisting with the search. Funding will come from domestic equities. CMERS hasn't yet identified specific managers. The pension fund is making the move for diversification.