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A pending vote could see the employees' money withdrawn from hedge funds D.E. Shaw & Co., Brevan Howard Asset Management and Perry Capital, following the lead of the California Public Employees’ Retirement System.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)
Cum-ex (previously) is a technical, boring financial engineering technique that lets fraudsters file multiple tax-refund claims for the same stock transactions (they called it "dividend arbitrage"); from 2006-2011, the EU's largest, most respectable banks, law firms, and investors used the scam to steal $60,000,000,000.
Here’s a good explainer from Reuters on the airline industry’s response to the Wuhan coronavirus outbreak so far. If the virus spreads becomes a pandemic, this could impact world financial markets as did SARS in 2003.
Impeached phony president and utter turd of a man Donald Trump will attend a breakfast meeting on Wednesday at Davos with Apple Chief Executive Tim Cook, Reuters reports.
It’s no secret that when it comes to building your brand online, nothing beats having a powerful and streamlined website. BoxHosting Website Hosting makes it easy to create an extensive online presence with room for 500 domains, 500 10GB email accounts, and unlimited desk space—and you only have to pay $45 for life. In addition […]
There’s never been a better time to work as a web developer—regardless of whether you’re looking to work with a big company or as a solo freelancer. The Essential PHP Coding Bundle will get you up to speed with one of the world’s most popular and powerful web development scripting languages, and it’s currently available […]
There’s overwhelming support for clean energy, and the planet is giving us more reasons to invest in renewable power sources with every passing year. Even in the most inhospitable areas, wind and solar can provide a good chunk of our power, if not all of it. So why aren’t we all taking advantage of it? […]