The Virginia Retirement System, Richmond, expects to increase its hedge fund exposure by up to $300 million, bringing it to $750 million to $800 million by the end of the first quarter. The $36.8 billion system intends to give most of the new allocation to its existing hedge fund managers — Ivy Asset, which runs $300 million, and CAMG Rock Creek, which handles $200 million, said Jeanne Chenault, spokeswoman. Separately, Relational Investors was hired to manage $100 million in active domestic equities. Details of the portfolio could not be learned by press time. Funding came from cash, said Nancy Everett, CIO.