Key Takeaways
- • The Fire & Police Pension Association of Colorado (FPPA) approved $240m in new hedge fund commitments as it restructures its alternative investment portfolio, according to Hedgeweek.
- • 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.
- • FPPA earlier this year decided to wind down its dedicated long/short equity allocation and raise its target weighting to diversifying strategies.
- • As of September 2026, diversifiers made up 11.1% of the $7.74bn long-term portfolio, slightly above the 11% target.
Summary
The Fire & Police Pension Association of Colorado (FPPA) has approved $240m in hedge fund commitments as it continues to reshape its alternative investment portfolio, according to Hedgeweek. The pension fund is maintaining its focus on diversification even though its diversifying strategies already exceed their target allocation.
The new 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 represented 11.1% of the $7.74bn long-term investment portfolio, slightly above the fund's 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 signal FPPA's continued appetite for hedge funds as a source of diversification, even as the pension adopts a more selective approach to individual strategies and managers.
The new 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 represented 11.1% of the $7.74bn long-term investment portfolio, slightly above the fund's 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 signal FPPA's continued appetite for hedge funds as a source of diversification, even as the pension adopts a more selective approach to individual strategies and managers.
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