Friday, July 31, 2015

NJ dumps three hedge funds as values tank

New Jersey has dumped its stake in at least three hedge funds as values fall, reports Pensions & Investments

NJ dumps three hedge funds as values tank


New Jersey, whose former $80 billion+ pension system has shrunk to $59 billion, was one of the last big pension plans to start buying hedge funds, over the initial objections of public employee unions, Republicans, and some veterans of the state investment staff.

The state has already traded out of some of those positions: "The New Jersey Division of Investment, Trenton, decided to redeem its $100 million investment in the GoldenTree Master Fund," Pensions & Investments reports, citing NJ Treasury spokesman Tom Vincz. NJ "invested in the GoldenTree hedge fund in January 2007. But the fund, which invests in below-investment-grade bank loans, high-yield bonds, middle-market loans, real estate and equities, had suffered 'significant losses' in 2008." Besides GoldenTree, NJ has also "redeemed" investments in Satellite Fund II and the Black River Multi-Strategy Leveraged Fund, P&I reported.

How has New Jersey done with the $9.3 billion it put into hedge funds, private equity and other "Alternative Investments" as the market peaked in the mid-2000s? Better than if it had kept them in stocks, investment chairman Orin Kramer told me.

We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy: comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
comments powered by Disqus
About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at,, 215.854.5194 or 302.652.2004.

Reach Joseph N. at or 215 854 5194.

Joseph N. DiStefano
Also on
letter icon Newsletter