University and Community College System of Nevada, Reno, hired Farallon and Och-Ziff to run diversified arbitrage portfolios, and HarbourVest to manage a private capital fund. Another private capital manager will be hired later this week, said Timothy Ortez, director of banking and investments for the $250 million endowment. As part of an ongoing study begun in mid-1997, the system is allocating 15% to alternatives, a new asset class. Farallon and Och-Ziff will manage approximately $10 million each; and HarbourVest and the unidentified manager will handle approximately $8 million each. Commonfund is the endowments other private capital manager. Funding comes from a 10% decrease in large-cap domestic equity and a 5% decrease in domestic fixed income. Cambridge Associates assisted.