The Fire & Police Pension Association of Colorado (FPPA) has approved $240m in hedge fund commitments as it continues to restructure its alternative investment portfolio, maintaining a focus on diversification despite already exceeding its target allocation.

The commitments follow a broader review of FPPA's hedge fund exposure, including a decision earlier this year 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 pension fund's $7.74bn long-term investment portfolio, slightly above its 11% target. The allocation encompasses global macro, multistrategy, low-beta long/short equity, alternative beta and opportunistic investment strategies.

The pension fund's manager 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.

The investments underscore FPPA's continued appetite for hedge funds as a source of portfolio diversification, even as the pension fund adopts a more selective approach to individual strategies and managers.