New York (HedgeCo.Net) – Andrew Cuomo, the Governor who banned fracking in NY state, de-criminalized the use of medical marijuana and signed same-sex marriage legislation into law, yesterday vetoed a bill that aimed to raise the amount of assets New York City and state pension funds could allocate towards hedge funds and private equity.
The bill proposed raising the cap from from 25% to 30% for New York City’s five retirement plans.
“The existing statutory limits on the investment of public pension funds are carefully designed to achieve the appropriate balance between promoting growth and limiting risk,” Governor Cuomo said. “This bill would undermine that balance by potentially exposing hard-earned pension savings to the increased risk and higher fees frequently associated with the class of investment assets permissible under this bill.”
Bloomberg reports: “Funds in other states haven’t followed California’s lead. In June, New Jersey’s $77.8 billion pension fund said it had added $1.1 billion to hedge funds since the start of its 2014 fiscal year, to protect against risk after a six-year bull market in stocks.”
Cuomo became governor of NY in an uncontested primary in 2010 and faced Republican Carl Paladino in the general election, where he won with 62% of the vote. Cuomo was elected to a second term in 2014.
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