The $5.5bn (€4.6bn) Louisiana State Employees' Retirement System has appointed Pacific Alternative Asset Management Company (Paamco) and K2 Advisors as its first fund of hedge fund providers.

Each will manage $55m but the structure of the portfolios has yet to be determined. The fund was advised by hedge fund consultant New England Pension Consultants in Boston. The same consultant advised A-P Fonden 7, one of the national pension funds in Sweden, on its hedge fund manager search.