There is more than a whiff of loser’s tactics about the way that pension funds and endowments have gone about investing in the past few decades. US public pension funds have over the past three decades plunged deeply into alternatives such as private equity, venture capital and hedge funds. Kick the habitThe real concern of course, is why pension funds don’t seem able to kick the habit. Current regulation treats pension funds as sophisticated investors, capable of entering into complex contracts where the money flows are not transparent. Only then can they know whether pension funds are playing carefully, or striving wastefully to make every service an ace.

Source: The Irish Times July 07, 2020 04:30 UTC