The $7.9 billion Orange County (Calif.) Employees Retirement System is in the final stages of its search for fund of hedge funds managers.

According to minutes from the system’s meeting, OCERS’ investment committee met last month to whittle down its list to five managers: EACM Advisors,  Grosvenor Capital Management (USA), Pacific Alternative Asset Management, Quellos Capital Management and Union Bancaire Privee Asset Management, and has instructed its staff to being due diligence on the finalists. 

A source with knowledge of the search said there is no deadline for the due diligence process, but expects that the system will begin the process shortly.

Orange County in March increased its allocation to absolute return strategies from 5% to 7% to allow for greater diversification and provide different sources of return for its overall portfolio. At the time, OCERS’s chief investment officer, Shanta Chary, said that the system was looking to allocate between $150 million to $200 million to an unspecified number of managers.

The system currently also has a 5% allocation to private equity fund of funds managers.