The New Jersey State Investment Council is committing $175 million to a pair of private equity and hedge funds.

The $80 billion pension fund is committing $75 to Ironbound Partners, a $1 billion global value oriented long/short equity hedge fund. Princeton, N.J.-based Ironbound was founded by ex-Merrill Lynch portfolio manager Stephen Silverman and, since inception in August 2004, the fund has generated annualized returns of 18.77% with volatility of 10.96% through May 2008.

New Jersey is also committing $100 million to Fairview Capstone II, which is being organized as a separate account to make commitments in small and/or emerging buyout and venture capital funds. The investment is a re-up for the division after committing an initial allocation of $100 million to Fairview Capstone in 2007.

Fairview Capstone Fund II intends to invest 50% to 60% in venture capital funds, 30% to 40% in buyout funds and up to 15% in special situations.