Fresno County (Calif.) Employees' Retirement Association will invest $30 million each in five hedge funds for a total of $150 million, pending legal approval, said Donald Kendig, retirement administrator, in an e-mail.
The hedge funds under consideration are BlueMountain Credit Alternatives, a long/short credit fund managed by BlueMountain Capital Management; Double Black Diamond, a relative value fund managed by Carlson Capital; HBK Multistrategy, managed by HBK Capital Management; Farallon Capital Offshore Investors, a multistrategy fund managed by Farallon Capital Management; and Fir Tree International Value Fund II, a multistrategy fund managed by Fir Tree Partners. Earlier this year, the $4 billion pension fund announced it was looking at expanding its relationship with hedge fund-of-funds manager Grosvenor Capital Management to a strategic partnership with Grosvenor maintaining a discretionary portfolio and advising on another portfolio of direct investments in hedge funds. The partnership is pending final legal approval.
The five hedge funds were recommended by Grosvenor for the pension fund's direct portfolio.
The pension fund has an 8% hedge fund target, about half of which is now invested in Grosvenor Institutional Partners, a hedge fund of funds.