LOL, via Wall Street Journal:
The officials overseeing pensions for Los Angeles’s fire and police employees decided last year to get out of hedge funds altogether after an investment of $500 million produced a return of less than 2% over seven years, according to Los Angeles Fire and Police Pensions General Manager Ray Ciranna. The hedge-fund investment was just 4% of the pension’s total portfolio and yet $15 million a year in fees went to hedge-fund managers, 17% of all fees paid by the fund.
“We were ready to move on,” Mr. Ciranna said.
What’s wrong with being flat over seven years? Think about how strategically, tactically brilliant your managers have been in navigating the global macular landscape and risk-managing your theta exposure to keep those deltas from bleeding out into your alpha capture.
The silver lining was a lot of really engaging, fascinating dinner conversation.