Staff at the California Public Employees' Retirement System, approved contract extensions of up to 12 months for the fund's alternative investment, alternative emerging investment and private equity programs. Hamilton Lane Advisors holds the alternative emerging investment contract; Pacific Corporate Group holds the alternative investment and private equity contracts. The extensions will permit the staff to prepare revised requests for proposals. AMT Capital Advisers will acquire and become investment adviser of the Lehman Selected Growth Stock Portfolio, a $43 million mutual fund formerly sponsored by Lehman Brothers Global Asset Management. Terms were not disclosed; the fund's board and shareholders must approve the change. The portfolio will be merged with a new shell portfolio of the AMT Capital Fund, which has been created for the purpose of the transaction. Delphi Asset Management will act as subadviser of the portfolio; Susan Hirsch, the fund's portfolio manager at Lehman, will join Delphi. Ms. Hirsch, who has run the fund since its inception in May 1994, had been in talks with Delphi prior to the transaction. The new portfolio will be named the AMT Capital Fund-U.S.Selected Growth Portfolio. Hambros Global Investment Fund PLC is launching its first fund, the Hambros Asia Advantage Fund. The Dublin-listed fund will be an open-end investment company that invests half of its assets in South Korea with the rest in other Asian stocks, excluding Japan. Lawmakers should require state securities regulators to stop regulating mutual fund investments, prospectuses and operations and leave that to federal regulators, Matthew P. Fink, president of the Investment Company Institute, is expected to testify tomorrow. The House Telecommunications and Finance subcommittee will hold hearings on the Capital Markets Deregulation and Liberalization Act. The bill is an effort by Rep. Jack Fields, R-Texas, the subcommittee's chairman, to overhaul securities regulations. The ``crazy patchwork'' of state regulations imposed on top of federal securities rules hurts investors by limiting mutual fund companies' ability to introduce new funds and simplify prospectuses, Mr. Fink's prepared remarks say. Some 66% of active equity portfolio managers outperformed the S&P 500 during the third quarter, according to the INDATA equity universe. William T. Kennedy, an Atlanta pension consultant, said typically 50% to 55% of the managers outperform the market. Indeed, for the year ended Sept. 30, only about 36% of equity managers outperformed the S&P, according to Mr. Kennedy. The S&P was up 7.9% in the third quarter. The median INDATA manager was up 8.8%. The median commingled equity fund outperformed the S&P 500 Stock Index in the third quarter, but trailed the index for the 12 months ended Sept. 30, the PIPER flash report shows. Of the 255 funds reporting for the quarter, the median fund returned 8.3%, while the S&P 500 returned 7.9%. The S&P returned 29.7% for one year, while median equity funds returned 26.4%. Small-cap growth funds led, with a median return of 13.3% for the quarter and 29.7% for the year. Growth stock funds returned 9.7% for the quarter and 25.7% for the 12-month period; value-oriented funds posted returns of 7.7% for the quarter and 24.3% for the year. PIPER commingled broad market fixed-income funds matched the Salomon Broad Bond Index for the quarter, with median returns of 1.9% and outperformed it for the year (14.3% vs. 14.1% for the index).