There is more evidence that hedge funds are toxic to the health of retirement funds.(Link) "For a troubling indication that the pain for hedge funds is only just starting, Chris Ailman, who runs investments at the $187 billion California State Teachers’ Retirement System, or CALSTRS, said in a Bloomberg Television interview from the Milken conference that the hedge fund industry’s two-and-twenty fee model is “broken” and “off the table” for large institutional investors."
The Texas Municipal Retirement System (TMRS) continues to increase it's investments in private equity, also known as hedge funds. They currently have $11.7 Million invested with a goal if increasing that amount by 100X.
TMRS has other investments using hedge fund manages such as Blackstone and BlackRock.
TMRS and Georgetown need to learn from the experiences of others!
Private equity and hedge funds are two different things !
ReplyDeleteAgreed! Both hedge funds and private equity funds appeal to high net worth individuals (many require minimum investments of $250,000 or more), traditionally are structured as limited partnerships and involve paying the managing partners basic management fees plus a percentage of profits.
ReplyDeleteHedge funds tend to focus on liquid short term investments and private equity tends to focus on long term less liquid investments.
Private equity is the best performing public pension asset class over the last 10 and 20 years. Hedge funds are not a class, they're a strategy, and they do many different things.
ReplyDeleteThe TMRS is the most conservatively invested public pension fund of its size in the US.