Hedge Fund News From HedgeCo.Net

Hedge fund fees hot topic at R.I. Investment Commission

PROVIDENCE, R.I. — Rhode Island has moved about $1 billion of its $7.6-billion state pension fund into hedge funds over the past 18 months, a move that General Treasurer Gina M. Raimondo defended against critics Wednesday in a meeting of the state Investment Commission.

For the first eight months, the state paid nearly $16 million in fees.

Facing withering criticism from recent stories by a Forbes magazine blogger accusing her of rewarding Wall Street fund managers, Raimondo and commission consultants argued that the strategy will help cushion the pension fund from a stock market crash such as the one in 2008 that cost the fund $2 billion.

Had hedge funds been in place then, says Raimondo, the state would have lost $500 million less.

Hedges in such investments as currencies, agricultural commodities and precious metals are designed to move against the stock market, and provide a better alternative to lower-yielding bonds, argued Raimondo and other commission members and consultants.

Read Complete Article

Related Posts Plugin for WordPress, Blogger...

About the HedgeCo News Team

The Hedge Fund News Team stays on top of breaking news in the Hedge Fund industry on an hourly basis. Signup to HedgeCo.Net to recieve Daily or Weekly news updates from our team.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply