By Anastasia DondeWhen the San Joaquin County Employees' Retirement Association set out to create its first dedicated hedge fund portfolio, the California pension plan made two unusual decisions: The fund rewrote its asset allocation last June to make room for a 7% allocation of its $1.7 billion portfolio to a global multistrategy hedge fund, and it wound up hiring Arrowhawk Capital Partners, a firm that had just recently been launched.Both plans are less daring than they seem: San Joaquin invested in a similar multistrategy fund several years ago, albeit on a much smaller scale, about $45 million. And although Arrowhawk only started investing a year and a half ago, it was set up by FrontPoint Partners veteran Michael Litt, who ran San Joaquin's original hedge fund portfolio.The county terminated FrontPoint when the group was acquired by Morgan Stanley, in October 2006. The new 7% portfolio is the pension fund's first...
