Pentegra Group, White Plains, N.Y., plans to invest $250 million of its $1.6 billion Financial Institutions Retirement Fund in hedge funds of funds, said Horace J. "Hod Caulkins, chief investment officer. Pentegra, which oversees the defined benefit fund, is seeking highly diversified funds of hedge funds that have minimal correlation to the equity markets, he said. Also, FIRF wants at least 15 hedge funds in each fund of funds, "because we know from time to time something can go wrong, Mr. Caulkins said. It is seeking an expected 5% to 15% absolute return from the funds. Generally, funding will start at $10 million each. The fund has no timetable for getting to its target allocation.