INVESTING/PORTFOLIO STRATEGIES

New Jersey Division of Investment invests $650 million in alternatives funds

New Jersey Division of Investment, Trenton, hired Scopia Fund Management to run $150 million in a long/short equity hedge fund that focuses on small caps and midcaps, confirmed spokesman Andrew Pratt.

It is the first investment with Scopia for the division, which oversees the $70.6 billion state pension system. The pension funds had a 7% allocation to equity hedge funds as of Oct. 31.

Separately, the board approved an additional $400 million to SONJ Private Opportunities Fund II, a separate account co-investment strategy, raising it to $800 million. The fund, managed by BlackRock (BLK) Private Equity Partners, invests globally across several private equity strategies.

The board also committed an additional $100 million to GoldenTree Credit Opportunities Fund, a bank loan fund managed by GoldenTree Asset Management. The division previously invested $150 million in the fund.