International Paper Co., Stamford, Conn., hired UBS OConnor and Ramius Capital Group to manage $150 million to $200 million in fund of hedge fund investments as part of a portable alpha strategy for IPs $5.5 billion U.S. pension fund, said Carol Tusch, director of trust investments. Details of the strategy are still being worked out, but it will comprise $250 million to $300 million total, of which 25% to 40% will be S&P 500 index futures. The balance will be invested in fund of hedge funds with UBS OConnor, Ramius Capital and the Blackstone Group; Blackstone already runs $60 million for the plan.
Funding for the portable alpha strategy will come from decreasing some of the funds large-cap equity portfolios. Plan officials have had not determined which managers will be affected, Ms. Tusch said.
Rocaton Investment Advisors assisted.