New York City Employees'Retirement System's board has determined to exit all hedge fund investments,such as those in Brevan Howard and D.E. Shaw, in light of consultants' advice thatthe public pension can obtain targeted investment returns from funds that are lessrisky, Reuters reported April 14.
The hedge fund fees paid by NYCERS reached almost $40 millionin its 2015 financial year, Reuters noted, citing the public pension's financialreport. However, the public pension's hedge fund portfolio returned 3.89% over theyear.
Unaudited data from the city comptroller's office indicated thatthe hedge fund exposure of NYCERS was $1.4 billion as of Jan. 31, according to thereport. The public pension had $51.2 billion in assets as of Jan. 31, the news outletsaid.