SACRAMENTO, Calif. (HedgeWorld.com)–The California Public Employees’ Retirement System allocated US$10 million to Tosca, a long/short hedge fund managed by ex-Tiger managers.

The investment with Tosca is the sixth hedge fund investment for the US$151 billion pension fund. Last month, the fund invested US$50 million in five hedge funds.

The hedge fund firms selected by CalPERS were: Andor Capital Management; Atticus Capital Management; Evnine-Vaughan Associates; Liberty Square Asset Management; and Symphony Asset Management.

A total of US$10 million was invested in each fund with an agreement to have the option to place up to US$50 million in each fund over time, except for Liberty Square Asset Management, which is limited to US$40 million.

Martin Hughes and Johnny de la Hey launched Tosca in 2000. Mr. Hughes’ Tiger Management pedigree and Mr. de la Hey’s experience are where Tosca’s strength lies, according to CalPERS investment committee documents. Mr. Hughes joined Tiger in 1997 as head of the global financials team, while Mr. de la Hey worked as a financials specialist at Tiger Management Europe.

The fund focuses on highly liquid, large-cap financial and business services stocks globally. The managers’ identify trends that will have a significant impact on companies within the financial services sector. Maximum gross exposure is 250% and the fund has the flexibility to maintain a 50% net long and 50% net short portfolio. The fund will hold around 45 positions in total with low portfolio turnover.

All told, CalPERS has received information on 136 managers since 2001. As of March 31, there were 29 managers on a list for further review and six funds in line for due diligence reviews, according to CalPERS documents.