How teachers, firemen and college endowments ended up enriching America’s hedge fund billionaires

Posted: July 7, 2017 in Uncategorized

*
*
Pensions would have been better off investing in cash than in hedge funds, largely because of the high fees investors pay hedge fund managers.

Kopitiam Bot

(Source: www.businessinsider.sg)

caption
Bill Ackman.
source
REUTERS/Lucas Jackson

    Public pensions and college endowments are some of the biggest investors in hedge funds, investment vehicles that have made their managers some of the wealthiest people in the world.Middlemen funnel this public money into the hedge funds, as do funds of funds. All of them collect fees.Pensions could have been better off investing in cash than in hedge funds, largely because of the high fees investors pay hedge fund managers. Hedge funds haven’t met the expectations for endowments over the past several years, either.

In the summer of 2015, Penn State’s endowment invested $50 million in Pershing Square Capital, a high-profile hedge fund run by New York City billionaire Bill Ackman.

The endowment, one of the largest held by a university, invested as the fund was coming off years of stellar performance. Two years later, the fund has had…

View original post 2,474 more words

Comments

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s