StreetInsider.com – Connecticut State Treasurer Denise Nappier is moving forward with a plan to invest in hedge funds after losing $5 billion of pension assets this year.
Nappier will begin allocating up to 8% of the $20 billion she oversees for public sector employees and teachers into hedge funds after the state’s investment advisory council approved the plan later today.
Ironically, Connecticut, which has many of the world’s largest hedge funds, is one of the few states that doesn’t invest its public pension in the asset class.
The three retirement funds Nappier controls are heading for the worst annual performance since at least 1991, according to treasurer’s office data. Bloomberg reported asset values fell 19.5% to $20.7 billion from $25.9 billion between July 1 and the end of October.