Boston.com – When the FBI raided three hedge funds last month, Massachusetts pension officials weren’t immediately sure if they had a problem.
By the end of the day, they knew they potentially did: The pension fund had nearly $66 million invested with two of the firms swept up in an insider-trading investigation. The money was in so-called funds-of-funds, vehicles that invest across many hedge funds but disclose little about exactly where the money ends up.
