Sunday, 21 September 2014
Last updated 1 day ago
Jan 13 2011 | 1:05pm ET
One of the world’s largest hedge fund investors may be in some hot water over those investments.
The Securities and Exchange Commission is looking into whether the California Public Employees’ Retirement System had misled investors about the risks in its massive portfolio when it backed a state bond sale, The New York Times reports.
It is not clear that CalPERS’ hedge fund or private equity portfolios are a target of the SEC probe. But the asset classes are a sizeable chunk of the pension’s $220 billion portfolio and contributed to its 25% loss during the financial crisis. That loss has saddled California with billions in replacement costs. The SEC is looking into whether the state should have disclosed that possibility in its bond prospectus.
The CalPERS investigation could lead to the second SEC enforcement action against a state; last year, the agency sued New Jersey for allegedly misleading bond investors about its pension funds’ financial state.
CalPERS said the SEC has only contacted it about its use of placement agents and not about the bond issue.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.