SACRAMENTO (–Farallon Capital is that latest hedge fund manager to be included in the California Public Employees’ Retirement System’s US$1 billion hedge fund program.

The initial funding of the Farallon Capital Offshore fund for US$50 million was completed on Aug. 1. The fund is a multi-strategy event-driven fund, investing in merger arbitrage, non-merger related risk arbitrage, credit investments, restructurings and value, and liquidations.

Farallon’s assets under management total US$8 billion. According to CalPERS, the fund’s performance has been strong on both a relative and absolute basis. Farallon has maintained a broadly diversified portfolio in terms of investment style and geographic exposure. The portfolio currently has 65% of its exposure in the United States, 22% in developed international markets, 7% in emerging markets and the remaining 6% in cash, according to CalPERS documents.

The US$136 billion pension fund has now allocated US$352.5 million to nine managers in the program.