Poll: NJ’s Private Fund Managers -- Does It Take Money to Make Money?
Are the fees paid to private hedge fund managers over the top or a smart investment to help replenish the state’s pension system?
The state-pension fund’s stakes in private equity, real estate, hedge funds, and other alternative investments are intended to diversify the overall portfolio and protect against fluctuations in the stock market. But these investments also rack up some serious fees with private managers -- $600 million in the past fiscal year. And that’s led to some serious questions about whether the state is getting good value in return for that money -- so much so that some lawmakers are calling for an independent, forensic audit.