The $51.8 billion Massachusetts Pension Reserves Investment Management Board is looking for firms to provide portable alpha fund of hedge funds services to the system, and has issued a request for proposals to search for qualified candidates.

The mandate is meant to build a complimentary lineup of fund of hedge funds to manage up to $600 million.

To qualify for the mandate, managers must have a three-year track record and manage over $500 million. Other desirable qualifications include the fund producing alpha greater than or equal to LIBOR +3% net of fees and expenses, with volatility of less than 6% and a Sharpe ratio greater than 1.

PRIM currently allocates a total of $2.1 billion to portable alpha managers including Crestline Investors, Grosvenor Capital and Strategic Investment Group. 

The deadline for the RFP, which can be accessed on PRIM’s Web site [1], is April 18.

Cliffwater is PRIM’s general and hedge fund consultant, and Hamilton Lane serves as the system’s alternative investment consultant.