The Massachusetts Pension Investment Management Board has decided to quit portable alpha as an investment strategy, redeeming $1.6 billion from four managers.

While MassPRIM investment chief Stanley Mavromates called the move “a strategic shift and not dissatisfaction with the individual managers,” the decision will still cost Crestline Investors $670 million, Strategic Investment Group $650 million, Blackstone Alternative Asset Managers $200 million and EIM $172 million. The latter two were hired just last year after MassPRIM decided to increase its portable alpha exposure to 6% of its $40 billion portfolio.

Since then, the strategy has been nothing but trouble for the pension, losing 46% in the 12 months through June 30. MassPRIM voted in August to get out of portable alpha.

While giving up on portable alpha, MassPRIM is sticking with hedge funds, which have made the pension “$1 billion better off.” In fact, much of the money redeemed from its portable alpha managers—which is expected to be back in MassPRIM coffers by the end of next year—will be redeployed to a quintet of hedge funds and funds of hedge funds: Arden Asset Management, K2 Advisors, Pacific Alternative Asset Management, Rock Creek Group and Grosvenor Capital.