Thanks to hedge fund investments, public employees from Oregon to Wisconsin to California find themselves pitted against Puerto Rico’s retirees.
While investigating the holders of Puerto Rico's $74 billion in public debt, In These Times stumbled across a hidden conflict: State and local pension funds across the rest of the United States are complicit in a bid to drain money from Puerto Rico’s pension funds.
Even though the $4 billion hedge fund investment being dropped by the California Public Employees’ Retirement System is minuscule by industry standards, Calpers has long been a trendsetter among public pension plans.
Puerto Rico is a politician-made disaster area. It has more than $72 billion of debt, an estimated $30 billion shortfall in its state pension fund, two government agencies have already defaulted on debts, and it faces a $2 billion p...
As the American territory scrambles to address growing debt and financial unrest, a powerful group of hedge fund investors led by a Big Tobacco lobbyist seek to turn public opinion against Puerto Rico in their time of greatest need.
The California Public Employees' Retirement System (Calpers), one of the largest pension funds in the United States, has decided to drop its investment in hedge funds by 40% (or down to $3 billion) this year, says the WSJ. The "why?...