New Mexico State Investment Council, Santa Fe, increased the amount of its first-time hedge fund allocation to $500 million from $350 million, said Charles Wollman, public information officer. A new law taking effect July 1 lifts limits on alternative investments by the state's public funds. Investment council trustees approved an increase in the total hedge fund allocation to 12.5% of assets, up from 10%, Mr. Wollman said. Staff interviewed 12 hedge fund-of-funds managers at the end of May and will likely make selections in July; he did not identify the firms. New England Pension Consultants is assisting.
Separately, the $12 billion council is investing $25 million in Pasadena Capital, a small to mid-market buyout fund, Mr. Wollman said. Funding comes from cash.