The $2.7 billion Chicago Policemen's Annuity & Benefit Fund hired UBS Hedge Fund Solutions and Pluscios Management to manage up to $50 million and $30 million, respectively, in long/short equity hedge fund portfolios at a board meeting Thursday.
Each firm will create a customized, concentrated portfolio of direct investments in long/short managers in a separate account format, said Aoifinn Devitt, chief investment officer, in an email.
Funding for the hires will come from a $200 million U.S. large-cap equity index fund managed by Northern Trust Asset Management, Ms. Devitt said.
Separately, trustees increased the allocation to BluePrint Capital Advisors to $53 million for investment in up to four specialist credit and yield-bearing funds within the fund's income-generating portfolio, Ms. Devitt said. BluePrint was initially awarded $25 million in March.
Funding for the credit hires will come from the core fixed-income allocation, said Ms. Devitt.