The £3bn (€4.4bn) J Sainsbury pension scheme has raised its allocation to hedge funds from 1% to 3%. The scheme is one of only a few hundred European institutions to have invested in the asset class.

The J Sainsbury pension scheme, advised by Russell, the investment consultant, has increased its allocation from £25m to £90m. Half the additional allocation has gone to La Fayette, a London fund of hedge funds manager with $2.2bn under management. The scheme chose La Fayette as one of its two fund of hedge fund managers when it made its initial allocation a year ago. It declined to name the other manager.