Singer Says Calpers Made Mistake Pulling Out of Hedge Funds

Paul Singer, who runs hedge fund firm Elliott Management, said the decision by the California Public Employees’ Retirement System to stop investing with hedge funds was a mistake.

“Calpers is not too big to have a group of trading firms in their mix,” Singer said today at a conference in New York sponsored by the New York Times’ DealBook. “I think they are wrong to desert the asset class.”

Singer, a billionaire, reiterated a view he’s expressed this year in letters to his investors that quantitative easing by the Federal Reserve had created an “unfair recovery.” Financial markets are distorted and bonds overpriced because of central bank policies, he said, though added that doesn’t mean they will collapse.

“The Federal Reserve board could say to the fiscal authorities ‘we’ve done enough,’” Singer said. “It’s up to the president and Congress to generate the policies to unleash the growth potential” that this country is capable of, he said.

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