Money and Finance
Thanks to Phil for passing this along.
- The Canadian Model: Invented In South Dakota?
Found via Abnormal Returns. It looks like the South Dakota Annual Report is also available HERE. What public pension system in the US of A is the best? Seriously, take a second and jot down the retirement system or investment council you think generates...
- Are Retail Investors ‘fleeing’ Stocks? – By Jason Zweig
Make no mistake: Individual investors are selling more U.S. stocks than they are buying, as my colleague Jack Hough pointed out this weekend. But it’s wrong to rely on mutual funds as the sole or primary indicator of retail flows into or out of U.S....
- Calpers 1% Annual Return Adds To California Ills
With three California cities electing to file for bankruptcy in the past month, in large part due to underfunded pension obligations, the last thing California needs right now is more bad pension news. Which is unfortunate, because the California Public...
- In Punishing Year For Hedge Funds, Biggest One Thrived
Found via ValueWalk. The world’s biggest hedge fund is also one of the best performers. Bridgewater Associates, which manages nearly $120 billion, posted returns of 23 percent in 2011 — a year when the average hedge fund portfolio lost 5 percent....
- Fpa’s Rodriguez Flouts ‘small Mind’ Investor Rules To Top Funds
Robert Rodriguez ignores most rules of the mutual-fund industry, an approach that’s helped him beat all rival managers over the past 25 years. Rodriguez, who runs the $1.1 billion FPA Capital Fund, puts most of his money into two or three industries...
Money and Finance
Pensions Find Riskier Funds Fail to Pay Off
Thanks to Phil for passing this along.
Searching for higher returns to bridge looming shortfalls,public workers’ pension funds across the country are increasingly turning toriskier investments in private equity, real estate and hedge funds.
But while their fees have soared, their returns have not. Infact, a number of retirement systems that have stuck with more traditionalinvestments in stocks and bonds have performed better in recent years, for afraction of the fees.
Consider the contrast between the state retirement fund forPennsylvania and the one for Georgia.
The $26.3 billion Pennsylvania State Employees’ RetirementSystem has more than 46 percent of its assets in riskier alternatives,including nearly 400 private equity, venture capital and real estate funds.
The system paid about $1.35 billion in management fees inthe last five years and reported a five-year annualized return of 3.6 percent.That is below the 8 percent target needed to meet its financing requirements,and it also lags behind a 4.9 percent median return among public pensionsystems.
In Georgia, the $14.4 billion municipal retirement system,which is prohibited by state law from investing in alternative investments, hasearned 5.3 percent annually over the same time frame and paid about $54 milliontotal in fees.
- The Canadian Model: Invented In South Dakota?
Found via Abnormal Returns. It looks like the South Dakota Annual Report is also available HERE. What public pension system in the US of A is the best? Seriously, take a second and jot down the retirement system or investment council you think generates...
- Are Retail Investors ‘fleeing’ Stocks? – By Jason Zweig
Make no mistake: Individual investors are selling more U.S. stocks than they are buying, as my colleague Jack Hough pointed out this weekend. But it’s wrong to rely on mutual funds as the sole or primary indicator of retail flows into or out of U.S....
- Calpers 1% Annual Return Adds To California Ills
With three California cities electing to file for bankruptcy in the past month, in large part due to underfunded pension obligations, the last thing California needs right now is more bad pension news. Which is unfortunate, because the California Public...
- In Punishing Year For Hedge Funds, Biggest One Thrived
Found via ValueWalk. The world’s biggest hedge fund is also one of the best performers. Bridgewater Associates, which manages nearly $120 billion, posted returns of 23 percent in 2011 — a year when the average hedge fund portfolio lost 5 percent....
- Fpa’s Rodriguez Flouts ‘small Mind’ Investor Rules To Top Funds
Robert Rodriguez ignores most rules of the mutual-fund industry, an approach that’s helped him beat all rival managers over the past 25 years. Rodriguez, who runs the $1.1 billion FPA Capital Fund, puts most of his money into two or three industries...