BusinessWeek – New York Governor Andrew Cuomo vetoed a bill last week that would have allowed the New York state, city, and teachers’ pension funds to increase their investment in hedge funds from 25 percent to 30 percent of fund assets. He cited the high fees and risk associated with hedge funds. The now-dead bill contained a memo justifying its proposed increase:
“The portion of the NYCRS [New York City Retirement System] portfolios allocated to public equities is much more volatile than the investments allocated to the basket. As a result, a swing in public markets can push NYCRS dangerously close to the investment cap with no new investments.”
