The Montana Board of Investments issued a request for proposals for funds of hedge funds almost two years ago. Apparently, the public pension fund manager didn’t like what it saw.
MBI has decided against awarding the mandate after finding the fees too high, the transparency too opaque and the liquidity too dry. Firms responding to the RFP offered “a constant flow of bad hedge fund news,” according to a memo obtained by Pensions & Investments.
“Perhaps the most troubling discovery was that three of the 24 RFP respondents had exposure to the Madoff ‘Ponzi’ scheme,” the memo said.