Florida State Board of Administration, Tallahassee, committed $125 million to Starboard Value, a corporate activist hedge fund, said John Kuczwanski, the board's communications manager.
Wilshire Associates, a consultant to the board, assisted.
It is the fourth corporate activist hedge fund commitment for the board, which oversees a total of $160.3 billion. The others are KV Partners, $179 million; Cevian Capital II, $137 million; and P2 Capital Fund, $101 million.
The corporate activist hedge funds are a subcategory of the board's strategic asset allocation — multiasset, opportunistic investments — but are separate from the board's 6% targeted hedge fund allocation, which also is a subcategory of strategic investments. Strategic investments, because of its opportunistic nature, has a flexible target ranging up to 11%, Mr. Kuczwanski said. FSBA has not set a target allocation for corporate activist hedge funds, he said.
