MassPRIM Goes On Offensive In War of Words

By Deirdre Brennan 

Massachusetts Secretary of State William Galvin has state pension fund managers and advisors scratching their heads over comments he made last week in which he blasted hedge funds and their use in pension funds. Galvin said that he feels the $40 billion Massachusetts Pension Reserves Investment Management board has invested too much in hedge funds, which he views as high-risk investments.   

MassPRIM, which is chaired by Massachusetts Treasury Secretary Tim Cahill, currently invests 5% of its portfolio in six fund-of-hedge funds and plans to double the amount invested in the vehicles to $4 billion by year-end.   

"I think [Galvin] is looking at it from an individual investor's point of view," said Cahill, who is a strong supporter of the plan having exposure to hedge funds. He added, "He is looking at the blowups."