UPDATE 1-Calpers may dump BlackRock as an adviser-source

* Calpers reviews real estate investment advisers

* Calpers to inform advisers on their status in Jan

* Pension found hedge fund advisers' contracts lapsed

* BlackRock shares up 0.4 percent (Adds NEW YORK dateline; adds detail about real estate review, news on pension consultant probe)

NEW YORK, Nov 25 (Reuters) - Calpers, the biggest U.S. public pension fund, is considering dumping asset manager giant BlackRock Inc (BLK.N: Quote, Profile, Research) as one of its real estate investment advisers, a person familiar with the matter said.

The California Public Employees' Retirement System is also investigating why two outside pension advisors were managing its $6.8 billion hedge fund portfolio two years after their contracts had lapsed, the Los Angeles Times reported on Wednesday.

Calpers, which has suffered major losses on private equity and real estate during the credit crisis, recently informed BlackRock and other advisers that it was reviewing the relationships and would decide whether to continue or sever ties.

BlackRock, one of the world's largest money managers and a company that has thrived during the crisis, nonetheless steered Calpers into investing $500 million into Peter Cooper Village and Stuyvesant Town, a sprawling 11,000-apartment Manhattan apartment complex.

That investment, inked near the height of the real estate boom, is now widely considered worthless, the Wall Street Journal said on Wednesday, citing unidentified sources. The housing complex is owned by Tishman Speyer Props LLC and BlackRock.