Richard Guay, chief investment officer of the Caisse de dépôt et placement du Québec, today announced the appointment of Christian Pestre as executive vp and chief strategist and Michel Malo as executive vp, hedge funds.

Pestre will report directly to Guay, providing strategic support for optimization of the Caisse’s overall portfolio and management of the specialized asset allocation portfolio. He will also play a key role in the application of internal and external research findings to enhance the Caisse’s return.

Also reporting directly to Guay, Malo will oversee management of the specialized hedge funds and commodities portfolios. He will also be responsible for development of in-house hedge fund management expertise and capability.

Previously, Pestre was the Caisse’s executive vp, absolute return, and Malo was its executive vp, investment analysis and optimization.

In April, Caisse President and CEO Henri-Paul Rousseau announced the creation of the investment division under the direction of Guay, CIO. “Since then, we have begun defining a structure geared to expertise, synergy and innovation that will help us achieve the Caisse’s ambition of becoming a benchmark organization,” Guay explained. “The appointment of Christian Pestre and Michel Malo to their new positions will enable the Caisse to rise even more effectively to the challenges presented by the financial markets and to meet its depositors’ expectations.”

The Caisse’s investment division consists of the teams responsible for management of 14 specialized portfolios that are invested in equity markets, fixed income and hedge funds. It also advises depositors on investment policy, performs asset allocation and conducts investment research.

The Caisse manages funds for public and private pension and insurance funds in Quebec, with $216.1 billion of total assets under management as at Dec. 31, 2005.