Existing hedge funds-of-funds manager Pacific Alternative Asset Management was awarded an additional $250 million, bringing its total mandate to $304 million, confirmed Julie Graham-Price, system spokeswoman.
According to a summary of the board's investment activities, OPERS staff members anticipate that all three hedge fund-of-funds managers will be funded by the end of the year.
Also, Crestline Investors, which managed $50 million, was terminated, Ms. Graham-Price said. The reason for Crestline's dismissal could not be learned. Douglas Bratton, Crestline's CEO and president, declined to comment.
The moves were the result of the system's increase in its hedge fund allocation by 67% to $804 million.
Funding for the increased hedge fund allocation came from domestic equity, whose target was cut to 25% from 42% in an allocation change approved by the board last year, Ms. Graham-Price said. As part of the same allocation shift, the target non-U.S. equity allocation was raised to 25% from 20%.