Posts filed under “Hedge Funds”
However much anyone is shocked, they really shouldn’t be. That’s because the high cost of hiring outside money managers to oversee the city’s retirement assets was entirely predictable. As Bloomberg reported in 2013, New York City is “the only one of the 11 biggest U.S. public-worker pensions that refuses to manage any assets internally.” That alone suggests that the city is paying disproportionately high fees compared with pensions that manage some or all of their funds in-house.
The highest cost investments the city has are its $9.72 billion in private equity and $3.34 billion in hedge funds. The $160 billion retirement system pays fees of more than $360 million a year to outside money managers. That’s a big deal.
But a big surprise? Not even close.
Continues here: Hey New York, Check Out Calpers
Later this week, I am interviewing Cliff Asness for Masters in Business. While doing some prep work for the show, I came across this delight: The Cliff Asness Disclosure document: Cliff Asness Disclosure: The views and opinions expressed herein are those of the author and do not necessarily reflect the views of AQR Capital Management,…Read More
Earlier this week, Greg Zuckerman of the Wall Street Journal pointed out one of the great mysteries of today’s investment landscape: Despite underperforming by a substantial margin, hedge funds keep attracting more investors and assets under management. It is almost as if (to borrow the headline on Zuckerman’s article), “Hedge Funds Keep Winning Despite Losing.”…Read More
Over the past few years, I have spilled quite a few pixels about issues with Hedge Funds from an investor’s perspective (See e.g., this, this, this, this and this). My 4 primary complaints are 1) Poor performance; 2) High Fees; 3) Inflated — phoney really — expected returns; and 4) Mis-classification of HF as an…Read More
Category: Hedge Funds
This has turned out to be a year of milestones for the hedge-fund industry. It is a tale we have chronicled all year. As markets barrel into the end of the fourth quarter, it’s worth reviewing the highlights from this year to see if we can deduce what might be in store for the 2&20…Read More
Category: Hedge Funds
Thanksgiving is behind us, and we are in full Shopmas mode. By now, you should have already made up your list of who has been naughty — overcharging for subpar performance — and who has been nice (those rare alpha-generators). Reward them accordingly. Let your favorite 2&20-er know exactly how much you appreciate their work with…Read More
You all the know urban legend of the conversation between F. Scott Fitzgerald and Ernest Hemingway. Fitzgerald: “Let me tell you about the very rich. They are different from you and me.” Hemingway: “Yes, they have more money.” It never happened, but it points to an interesting question: Why are we in America so fascinated with…Read More