The San Francisco City and County Employees’ Retirement System’sboard has voted 6-1 to move 5 percent of its $20 billion fund intohedge funds.

It’s a win for hedge fund proponents, sort of. Last year,some of the fund’s staffers were pitching a 15-percentallocation.

That recommendation, however, drew the ire of participantsin the plan, who voiced their concern over hedge funds’ high feesand secrecy. CalPERS’decision to divest its entire hedge fund allocation inSeptember – $4 billion worth of investments – fueled the debateover the appropriateness of hedge fund allocations in retirementfunds.

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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.