The New York City’s Employees Retirement System has $51B in assets, $1.5B of which is lodged with hedge funds -- but maybe for not much longer.
A pending vote could see the employees' money withdrawn from hedge funds D.E. Shaw & Co., Brevan Howard Asset Management and Perry Capital, following the lead of the California Public Employees’ Retirement System. Members of both systems say that the hedge funds fees are too high and they underperform the market.
Hedge funds have underperformed relative to the S&P index for 7 straight years. Fund managers pay themselves 2% of all the money they manage, plus 20% of the returns they earn on that money, if any.
“Hedge funds are charging exorbitant fees for high-risk and opaque investments” said New York City Public Advocate Tish James. ”Our public employees work hard for their money, and they deserve to know their investments are secure. We can and must invest responsibly and also honor our fiduciary responsibility.”
NYC Pension Weighs Liquidating $1.5 Billion Hedge Fund Portfolio
[Martin Z Braun/Bloomberg]
(via Naked Capitalism)
• U.S. jobless claims totaled 2.98 million last week, unemployment is close to 16%
New jobs report from U.S. released on Friday: JOBS LOST IN APRIL: 20.5 million UNEMPLOYMENT RATE: 14.7% This is the worst U.S. jobs report since the World War II era.
Elon Musk’s electric car company plans to reopen its one and only factory in the United States as soon as Friday, for ‘limited operations,’ in a county where coronavirus lockdown is ongoing.
With all due respect to our vegetarian friends, there might be nothing more intrinsically linked to the 4th of July holiday than a big ole cookout. Sure, fireworks and celebrating the birth of a constitutional republic are great too, but showing off your cooking prowess with a brilliantly seared, mouth-watering slab of grade-A American beef […]
We’re at the midway point of 2020. So…how’s the year going for you so far? Yeah…we can guess. But while there’s a lot about 2020 we can’t directly control, maybe a little retail therapy can help make you feel better. Sure, the 39 items we gathered together can absolutely bring a smile to your face. […]
When revved-up kids used to dribble a basketball through the kitchen or practice their footwork with a soccer ball in front of the television, exasperated parents would often just send ‘em outside to play. But these days, sending kids out might not be the best course of action. Despite all the changes, many budding young […]