Why NYCERS Should Reconsider Exiting All Hedge Funds

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Why NYCERS Should Reconsider Exiting All Hedge Funds by Donald A. Steinbrugge, CFA – Managing Partner, Agecroft Partners

I would like to share some thoughts regarding New York City Employees Retirement System (NYCERS) voting to exit all hedge funds. Pension funds should always be managed in the best interest of the plan’s beneficiaries. I believe this blanket decision to eliminate a full set of investment opportunities may result in doing the exact opposite. In addition, some of the comments by people associated with the pension fund raise concerns.

The first of these is the pension fund’s consultant stating they can reach their...

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