New York City’s largest public pension is exiting all hedge fund investments in the latest sign that the $4 trillion public pension sector is losing patience with these often secretive portfolios at a time of poor performance and high fees.
“Hedges have underperformed, costing us millions,” New York City’s Public Advocate Letitia James told board members in prepared remarks.“Let them sell their summer homes and jets, and return those fees to their investors.”
“Hedge funds are charging exorbitant fees for high-risk and opaque investments,” said James.
– From last week’s post: “Let Them Sell Their Summer Homes” – NYC’s Largest Public Pension to Ditch Hedge Funds
One of the largest, most destructive scams I’ve ever come across in the financial sphere (and that’s saying a lot), relates to the purposeful shift of state pension fund assets into opaque, shady, punitive and one-sided relationships with “alternative investment” managers, specifically hedge funds and private…