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CalPERS, the largest pension fund, is pulling out of hedge funds entirely due to weak returns and high fees. http://www.forbes.com/sites/jonhartley/2014/09/22/w
by guelo 12y ago
CalPERS, the largest pension fund, is pulling out of hedge funds entirely due to weak returns and high fees. http://www.forbes.com/sites/jonhartley/2014/09/22/why-calpers-is-exiting-the-hedge-fund-space/ http://www.forbes.com/sites/jonhartley/2014/09/22/why-calper...
What pisses me off the most about hedge funds is that they are a powerful center of political corruption, as evidenced by the inability of Washington to close the disgusting "carried interest" tax loophole.
- sseveran 12y agoCalPERS has too much money to effectively invest in hedgefunds. Good article here: http://www.bloombergview.com/articles/2014-09-16/calpers-has-lost-interest-in-hedge-funds http://www.bloombergview.com/articles/2014-09-16/calpers-has... Hedge funds are not the only people that benefit from carried interest. Real estate and energy investments benefit from it as well. Those industries have far more pull than hedge funds ever will.
- damoncali 12y agoIf you untangle the carried interest taxes, it gets more complicated than that. To close that "loophole" is basically to get rid of sweat equity. When you put it that way, it doesn't sound quite as appealing. I'm not saying it's not a debatable issue, but it has nothing to do with corrupt hedge fund managers.