Study: Hedge Funds Taking Over Pension Fund Investments, Increasing Risk

By: Wednesday June 4, 2014 1:06 pm

Recently Pando Daily broke a story about Governor Christie’s Administration violating pay to play laws by rewarding political donors with New Jersey Pension Fund contracts. The gist being that after General Catalyst employee Charles Baker donated money to the NJ GOP, General Catalyst received roughly $15 million to invest on behalf of retirees.

While the focus of the story was on violations of New Jersey’s pay to play laws, another facet of the scandal worth exploring is the increasing role alternative investment vehicles like General Catalyst – which is a venture capital firm – play in managing pension wealth. Private equity and hedge funds have begun to play an increasing role in pension investments as a recent Pew study points out.

The previously boring and safe strategy of buying government and top tier corporate bonds has been supplanted by the high flying big risk strategy of hedge funds.

 

Fatster’s Roundup from May 1, 2012

By: Wednesday May 2, 2012 6:30 am

Fatster compiles links and stories with news about Occupy Wall Street, home ownership, pension funds, US manufacturing, fracking regulations, babies born addicted, Rupert Murdoch, Dominique Strauss-Kahn, Mother Jones and more.

Wisconsin: Confusion Reigns Over Legality of Anti-Union Bill Passage in Wisconsin

By: Thursday March 10, 2011 6:04 am

When you talk to political folks in Wisconsin, you realize that transparency and procedure matter a lot. This violation of law is actually but one of the many dubious marks on yesterday’s action, and actually all the action around the budget repair bill and the assault on workers’ rights. Perhaps the open meetings violation could be rectified merely by waiting another day and starting over. But there are all the questions surrounding the content of the bill itself. The whole reason this ordeal has lasted three weeks is that the collective bargaining piece was tied into the budget repair bill, which had a fiscal impact. That’s what triggered the quorum requirement. But the Republicans supposedly stripped out the fiscal pieces and passed a purely non-fiscal bill last night in the Senate, and later this morning they’ll do the same in the Assembly.

We Can’t Break AIG Bonus Contracts – But Worker Pensions? No Problem!

By: Wednesday February 23, 2011 9:40 am

So where was all this “fiscally responsible” fighting spirit when it came to paying out $32.6 billion in taxpayer funded banker bonuses?

Well, as Larry Summers said, “we are a country of law.”

Economists: The Missing Heroes of the State and Local Government Pension Crisis

By: Tuesday August 10, 2010 8:47 am

Public pension funds would not be facing a crisis if economists’ projections of stock returns had been accurate.

Pension Funds Flexing Some Muscle on Foreclosures

By: Wednesday July 14, 2010 1:32 pm

Today, the Comptroller of the City of New York along with the presidents of several large unions sent a letter to some of the biggest baddest banks in the foreclosure mess and told those banks to get their acts together and start making mortgage modifications.

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