No Recovery, No Fee

424-835-5733 | 310-525-3516
866-451-2517

You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Hedge funds, public pension investments: a bad marriage

If they uniformly had the so-called Midas Touch, that would be one thing.

But they don't, and that makes it something else altogether.

So says one investment manager penning a recent -- and clearly arsenic-laced -- article in a national media piece that focuses like a laser on the inappropriate coupling of hedge fund managers with investments employed on behalf of public pensioners.

That makes for a volatile, unstable and ultimately disappointing mix, which has unquestionably yielded dire and downward results for many millions of Americans in recent years.

Here's a telling takeaway offered by money manager Leland H. Faust in the above-cited Huffington Post piece: Reportedly, 2016 marked the eighth straight year in which the "average" hedge fund failed to match the return of a relevant index composite.

Faust says that a basic "so what" might be a logical response to that if the often risky and relatively secretive selections of hedge fund principals were being applied solely on behalf of wealthy private investors.

But they're not. In fact, stated Faust, "More than half of the $3 trillion held in hedge funds nationwide is pension fund and retirement plan investments."

That spells unsuitable investing in uppercase, charges Faust, and demands an immediate and material response from officials investing the hard-earned monies of employees in pension plans.

To wit: It means promptly pulling the plug on such investments, which Faust contends are supremely inappropriate for preserving and growing money that legions of people are depending upon in their senior years.

Faust says that the hedge fund/pension marriage is "ripping off hard-working middle-class Americans" and enriching only fund managers in that singular and select industry.

Reportedly, the top 10 hedge fund earners currently have income that collectively exceeds "the combined compensation of the CEOs of all of the S&P companies" operating in the United States.

No Comments

Leave a comment
Comment Information

Our Office Location

The Law Offices of Marc I. Zussman
433 N. Camden Drive
Suite 730 
Beverly Hills, CA 90210       
Map & Directions

Local: 424-835-5733
Local: 310-525-3516
Toll Free: 866-451-2517
Fax: 310-525-3528

map