US. Public pensions lose on hedge funds — again
By Brett Arends
One of these days I’m going to write about a bunch of retirees and future retirees who have just made a ton of extra money thanks to the financial brilliance of elite, exclusive, high-fee hedge funds.
Today, however, is not that day.
Instead, here comes more news about a public pension fund allegedly missing out on billions of dollars because of hedge funds and other high-fee funds.
And the news that retirement systems and other institutional investors continue to pour yet more money into the hedge fund racket—excuse me, “industry.“
Oh, and reports that the industry is allegedly posting great returns thanks to the reopening of the economy.
Phooey.
Here are the facts, although I don’t expect them to break through the Reality Distortion Field apparently surrounding the folks who keep investing in hedge funds.
Exclusive hedge funds that involve complicated and exotic financial maneuvers are performing worse this year than a basic portfolio involving five, or even two, Vanguard funds that anyone can buy.
And this was true last year. And the year before that. And over the last five years. And over the last 10.
Read more @Market Watch
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