The $126 billion New York State Common Retirement Fund, Albany, invested $250 million in an emerging-markets hedge fund run by Finisterre Capital.
The investment in the new hedge fund, which started Jan. 1, makes the New York fund the largest single investor in Finisterre, which now has a total of $920 million under management, Paul Crean, chief investment officer of Finisterre, said in a telephone interview.
Mr. Crean said the new emerging-markets hedge fund serves as a feeder fund for three other Finisterre funds. Mr. Crean said the New York fund has been an investor for more than two years for Finisterre's global opportunity fund, which he described as being midway in liquidity and risk between the firm's more liquid sovereign-debt fund and the more risky special situations fund. He declined to say how much New York had invested in the global opportunity fund.
Calls to the New York state comptroller's office were not returned.