Ex-Rhode Island Treasurer Says Hedge Fund Fee Payments Have Soared

Jun 3 2013 | 10:20am ET

The controversy over the Rhode Island state pension's hedge fund policies continues to rage, with a former state treasurer—and current candidate to retake the job—criticizing his successor.

Frank Caprio, who served as the state's treasurer from 2006 until 2010, blasted current General Treasurer Gina Raimondo, claiming that fees paid by the pension to hedge funds "have gone up from about $12 million annually to about $50 million." He said that, by contrast, under his administration, Rhode Island paid "some of the lowest fees in the country."

Raimondo last month released a breakdown of the fees paid to Rhode Island's hedge fund managers, among them such marquee names as Och-Ziff Capital Management, D.E. Shaw Group, Viking Global Investors and Brevan Howard Asset Management. Raimondo's report said that Rhode Island paid about $15.9 million during the fiscal year ended June 30, 2012.

The Providence Journal's PolitiFact Rhode Island ruled that Caprio's claims were only "half true," noting that it is unclear whether Caprio's figures for his own stewardship are complete.

Caprio, who was the Democratic nominee for governor in 2010, losing to then-Independent Lincoln Chafee, who last week joined the Democratic Party, is seeking the party's nod for his old job in 2014 against Raimondo, also a Democrat.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.