Thursday, April 14, 2016

HEDGE FUNDS | NYCERS to Vote on Exit

Tish James
April 14, 2016–After a 1.88% loss on its investments last year, the New York City Employees’ Retirement System is considering getting out of hedge fund investing, says Bloomberg. 

Reasons: High fees, poor returns, low transparency.

The pension fund’s trustees are expected to approve divestiture from hedge fund investments. But such a move could take years. NYCERS has about 3% of its $51 billion portfolio invested in hedge funds. Its investments include D.E. Shaw, Brevan Howard Asset Management and Perry Capital.

“Hedge funds are charging exorbitant fees for high-risk and opaque investments,” says Letitia “Tish” James, a trustee of the fund and the city’s public advocate.