New York pension fund pulls hedge fund investments
New York City's largest public pension fund will liquidate around $1.5bn worth of hedge fund investments.
The board of the New York City Employees Retirement System (NYCERS) voted on Thursday to unwind current positions in the vehicles and stop future investments.
It comes amid increasing dissatisfaction with hedge funds from public pension funds due to under performance and high fees.
California Public Employees’ Retirement System, the largest US pension, divested its $4bn hedge fund portfolio last year saying the asset class was too expensive and complex.
NYCERS, whose members include librarians and nurses, had close to 3% of its total $60.5bn worth of assets invested in hedge funds as of June last year.
It paid nearly $40m in fees to hedge funds during that time.
Investments included Luxor, Perry Capital, SRS Investment Management and Brevan Howard.
The total return from the pension fund's entire hedge fund portfolio was 3.89% over the year, according to NYCERS' financial report.
Found this useful?
Take a complimentary trial of the FOW Marketing Intelligence Platform – the comprehensive source of news and analysis across the buy- and sell- side.
Gain access to:
- A single source of in-depth news, insight and analysis across Asset Management, Securities Finance, Custody, Fund Services and Derivatives
- Our interactive database, optimized to enable you to summarise data and build graphs outlining market activity
- Exclusive whitepapers, supplements and industry analysis curated and published by Futures & Options World
- Breaking news, daily and weekly alerts on the markets most relevant to you
