Lifestyle

Retired Arnold Eyes Pension Reform

Jun 27 2013 | 1:02pm ET

Another hedge fund manager is weighing in on the thorny issue of public pension reform.

John Arnold, who made billions running Centaurus Advisors before shutting the hedge fund last year, is turning his foundation and fortune to reforming California's public pensions. Arnold aims to back groups seeking to limit public-employee pension deals, which are threatening the fiscal health of states and municipalities across the country.

Arnold has been involved in the pension reform movement for years, having given $150,000 to the California Foundation for Fiscal Responsibility two years ago, out of a total of about $10 million spent nationwide on the issue.

Arnold's acceleration of his pension effort comes after the American Federation of Teachers issued a watch list of hedge and private-equity funds run by those it says are seeking to undermine public pensions. The union particularly targeted Third Point's Daniel Loeb.

Unlike the managers on that list—some of whom have backed down in the wake of its release—Arnold is no longer managing outside capital. But he's still subject to the outrage of the potentially affected.

"It's the height of narcissism for a Texas billionaire who doesn't have to worry about his retirement to come into California and try to meddle with the secure retirement of working-class people," Service Employees International Union spokesman Lowell Goodman said.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of