SUNSET. 3 Reasons East Coast Pension Says NO to Private Money Management

New Jersey is cutting its ties to private money managers/hedge funds. New Jersey joins Pennsylvania and California in limiting or eliminating private money managers to hedge their bets for these reasons:

• the hedge funds did not hedge the pension losses
• In New Jersey, the private money managers were working on a projected 8% return. The actual return was -6.5%
• The pensions would have made more money in bonds

Philly.com | New Jersey pension system re-thinks hedge funds