A major cause of those problems, the suit asserts, is the pension system’s investments in so-called hedge “funds of funds” ― that is, hedge funds composed of other hedge funds. At the time, the state was supposedly making some effort to reduce the pensions’ overall involvement in hedge funds. Investments in hedge funds of funds have created legal scandals for state pensions across the country, including in California and New York. Amid more scrutiny, California, New York and other states have pledged to rid their pension systems of hedge fund investments. Any damages the eight plaintiffs themselves received would go to Kentucky Retirement Systems, the suit says, to help shore up the pensions.

Source: Huffington Post December 28, 2017 22:52 UTC