Florida State Board of Administration, Tallahassee, hired direct hedge fund managers Highline Capital Management and Mason Capital Management to run a combined $250 million, according to John Kuczwanski, FSBA communications manager.
Highline Capital Partners QP LP fund, using a long-short approach, received $150 million, and Mason Capital LP fund, an event-driven strategy, received $100 million, Mr. Kuczwanski said in an e-mail.
Cambridge Associates, the board’s hedge fund consultant, assisted in the search.
FSBA is building a hedge fund program for the $131.3 billion Florida Retirement System defined benefit fund, which it oversees. The board is targeting a 6% allocation.
The two hedge funds are the first hires under an asset allocation plan adopted last year; the board targeted a 2% allocation each to absolute-return hedge funds, long/short equity hedge funds and open-mandate hedge funds.
Funding for the two hedge funds will come from general fund liquidity, Mr. Kuczwanski said in the e-mail.
The FSBA oversees a total of $160.3 billion.