Key Takeaways
- • The Fire & Police Pension Association of Colorado (FPPA) approved $240m in hedge fund commitments as it continues restructuring its alternative investment portfolio.
- • The commitments include $200m to Millennium Partners' flagship multistrategy hedge fund and $40m to NovaCore, a European industrials-focused market-neutral strategy founded by former Citadel portfolio manager Nico Dil.
- • Diversifiers represented 11.1% of FPPA's $7.74bn long-term investment portfolio as of September 2026, slightly above the 11% target.
- • FPPA earlier this year decided to wind down its dedicated long/short equity allocation and raise its target weighting to diversifying strategies.
- • The pension fund is continuing to use hedge funds for diversification while adopting a more selective approach to individual strategies and managers.
Summary
The Fire & Police Pension Association of Colorado (FPPA) has approved $240m in hedge fund commitments as it continues to restructure its alternative investment portfolio. The commitments are being made despite the pension fund already exceeding its target allocation to diversifying strategies, according to the primary report, and reflect a focus on diversification within its portfolio.
The commitments follow a broader review of FPPA's hedge fund exposure. Earlier this year, the pension fund decided to wind down its dedicated long/short equity allocation and increase its target weighting to diversifying strategies. As of September 2026, diversifiers accounted for 11.1% of the pension fund's $7.74bn long-term investment portfolio, slightly above its 11% target. The allocation spans global macro, multistrategy, low-beta long/short equity, alternative beta and opportunistic investment strategies.
The largest commitment is $200m to Millennium Partners' flagship multistrategy hedge fund. FPPA also committed $40m to NovaCore, a European industrials-focused market-neutral strategy founded by former Citadel portfolio manager Nico Dil.
The investments underscore FPPA's continued appetite for hedge funds as a source of portfolio diversification. At the same time, the pension fund is taking a more selective approach to individual strategies and managers. The story was also covered by Hedgeweek under the same headline.
The commitments follow a broader review of FPPA's hedge fund exposure. Earlier this year, the pension fund decided to wind down its dedicated long/short equity allocation and increase its target weighting to diversifying strategies. As of September 2026, diversifiers accounted for 11.1% of the pension fund's $7.74bn long-term investment portfolio, slightly above its 11% target. The allocation spans global macro, multistrategy, low-beta long/short equity, alternative beta and opportunistic investment strategies.
The largest commitment is $200m to Millennium Partners' flagship multistrategy hedge fund. FPPA also committed $40m to NovaCore, a European industrials-focused market-neutral strategy founded by former Citadel portfolio manager Nico Dil.
The investments underscore FPPA's continued appetite for hedge funds as a source of portfolio diversification. At the same time, the pension fund is taking a more selective approach to individual strategies and managers. The story was also covered by Hedgeweek under the same headline.
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