Fairfax County (Va.) Employees' Retirement System hired First Quadrant to manage a $50 million portable alpha strategy, said Laurnz A. Swartz, executive director of the $2.5 billion fund. The strategy also will be used as part of a portable alpha overlay on $350 million of the fund's $700 million large-cap equity exposure, Mr. Swartz said.
Funding will come from terminating DSI International Management, which ran a $100 million enhanced S&P 500 index fund, and JPMorgan Asset Management, which ran $50 million in the same passive strategy. The additional $50 million went to FrontPoint Partners, which now manages $50 million in a new multistrategy hedge fund.
The system tentatively selection another portable alpha manager to run the remaining $50 million, but Mr. Swartz declined to name the firm.