Thursday, September 18, 2014

Biggest pension shunning hedge funds a green light for liquid alts

Biggest pension shunning hedge funds a green light for liquid alts:

"The California Public Employees' Retirement System, commonly known as Calpers, announced Monday it is eliminating its $4 billion exposure to hedge funds for reasons largely related to high fees."

In a related article on Main St, Hal Bundrick writes:

"“We are always examining the portfolio to ensure that we are efficiently and cost-effectively achieving our risk-adjusted return goals," Ted Eliopoulos, interim chief investment officer for the nearly $300 billion pension fund, said in a statement. "Hedge funds are certainly a viable strategy for some, but at the end of the day, when judged against their complexity, cost, and the lack of ability to scale at Calpers’s size, the ARS program is no longer warranted."


Still on the hedge fund band wagon?  Let's go over to the where Morgan Housel wrote back in January: 

"'s become plainly clear in recent years that the biggest bull market was in inflated promises. As a group, hedge funds -- which now manage $2.5 trillion -- have consistently underperformed a basic S&P 500 index fund over the last five years. 

Anyone want to predict hedge fund fees will keep falling?

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