September 21, 2014
Gretchen Morgenson had a good piece on the decision by the California Public Employees Retirement System (Calpers) to stop investing in hedge funds. She pointed out that such investments have been big losers for pension funds since the money transferred to the managers vastly exceeded any investment gains.
Interestingly, just last week the NYT praised to the sky Rhode Island’s Treasurer and now Democratic gubernatorial candidate Gina Raimondo for a pension “reform” strategy that put much of the state’s pension funds into hedge funds. Apparently, public subsidies for Wall Street still rank as an important policy goal in some circles.
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