The last blog post incorrectly said hedge funds and private equity funds were equal, but, as stated in the comments, they are not. They are similar in many respects including high risk with high fees.
Yves Smith of the NakedCapitalism blog has the following to say about private equity funds today (NakedCapitalism): "But the desperation measure of these long-term investors is to chase returns, risk be damned. And with hedge fund coming more and more into disfavor, private equity is an even hotter ticket than before".
"In other words, this movie is unlikely to have a happy ending as far as investors and the taxpayers who backstop them are concerned. But don’t buy the story that no one could have seen this coming".
So, it would seem that TMRS would be well advised to invest in private equity with much caution as it is the municipal employees money that they are investing.
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