How Hedge Fund Billionaires Profit

To say that hedge fund managers are wrecking our schools and pose a threat to our very democracy might sound extreme. But take one look at how they make and protect their billions and it’s hard not to see hedge fund managers as cackling Monopoly men who light their cigars with dollar bills (and take candy from babies as they laugh all the way to the bank).

– from “Shocking: How hedge fund billionaires profit at the expense of our students” (March 21 NEA’s Education Votes web site)

The number of public pensions that use hedge funds has steadily increased to 282 in 2016 from 234 in 2010, data from research firm Preqin show. The average percentage of pension portfolios in hedge funds also rose to nearly 10 percent… A 2014 Preqin survey found the most important factor were returns uncorrelated to stock markets, followed by gains regardless of market direction, and lowering portfolio volatility, among others… Large public pensions planning or considering an increase to their hedge fund allocation are the California State Teachers Retirement System, and the general state pensions of Massachusetts and North Carolina. At least six pensions are considering an investment in hedge funds for the first time, according to Preqin, including the Chicago Firemen’s Annuity & Benefit Fund, Louisiana School Employees’ Retirement System, Iowa Public Employees’ Retirement System and the San Francisco Employees’ Retirement System.

– from “Public pensions stick with hedge funds despite frustrations” (May 10 Reuters)

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