Chicago police fund chooses 2 for custom hedge funds of funds

The $2.7 billion Chicago Policemen's Annuity & Benefit Fund hired UBS Hedge Fund Solutions and Pluscios Management to manage up to $50 million and $30 million, respectively, in long/short equity hedge fund portfolios at a board meeting Thursday.

Each firm will create a customized, concentrated portfolio of direct investments in long/short managers in a separate account format, said Aoifinn Devitt, chief investment officer, in an email.

The other finalists in the search were EnTrustPermal, J.P. Morgan Asset Management (JPM) and PAAMCO Prisma.

Funding for the hires will come from a $200 million U.S. large-cap equity index fund managed by Northern Trust Asset Management, Ms. Devitt said.

Separately, trustees increased the allocation to BluePrint Capital Advisors to $53 million for investment in up to four specialist credit and yield-bearing funds within the fund's income-generating portfolio, Ms. Devitt said. BluePrint was initially awarded $25 million in March.

Funding for the credit hires will come from the core fixed-income allocation, said Ms. Devitt.