The San Francisco City and County Employees’ Retirement System’s board has voted 6-1 to move 5 percent of its $20 billion fund into hedge funds.
It’s a win for hedge fund proponents, sort of. Last year, some of the fund’s staffers were pitching a 15-percent allocation.
That recommendation, however, drew the ire of participants in the plan, who voiced their concern over hedge funds’ high fees and secrecy. CalPERS’ decision to divest its entire hedge fund allocation in September – $4 billion worth of investments – fueled the debate over the appropriateness of hedge fund allocations in retirement funds.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
