State looks to boost pension fund with hedge fund investments — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

State looks to boost pension fund with hedge fund investments

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The New Jersey Department of the Treasury has received court approval to invest $9 billion of the state’s public employee pension fund in alternative investments, including hedge funds, in an attempt to improve performance in a sluggish market.

The pension fund lost about 3.1% of its value in FY08, although that result beat the national average by about 2%. The pension fund totals more than $78 billion.
 
The Communications Workers of America and the New Jersey Education Association challenged the move, saying the investments were too risky and would lead to political abuse. An appeals court rejected the challenge, noting that state law permits such investments.

 

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