Nashville's main public pension fund is set to invest $85 million in a hedge fund managed by former President George W. Bush's brother.
The Metro Pension Investment Committee is moving forward with plans to invest in Winston Partners after receiving legal clearance. There had been questions as to whether the Arlinton, Va.-based firm had properly completed the request for proposals for the allocation; it didn't mention that Marvin Bush was sued by shareholders of HCC Insurance Holdings, on whose board he served.
"Unfortunately, as we discussed, if Metro wanted information such as that described above regarding the Winston principal, the RFP simply did not ask the right question and Winston appears to have responded appropriately to the question posed in the RFP," law firm Baker Donelson wrote.
"We appreciate that the accuracy and appropriateness of our response was confirmed by a highly-respected law firm, particularly given our firm's well-earned reputation for integrity, compliance and transparency," Bush said.
The investment in Winston will be Metro's first, part of a $170 million hedge fund allocation plan.