Deals
As N.J. Cuts Hedge Fund Ties, Chatham Shows That Can Take Years
- New Jersey aims to withdraw about half its cash at hedge funds
- Calpers has been waiting to exit Chatham and others for years
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New Jersey’s plan to slash about $2 billion of its hedge fund investments sounds simple: Pick the top managers, ask others for redemptions and collect the cash.
Yet overseers of the state’s pension system can look cross-country to see how long that can take. Five years after California’s biggest retirement plan decided to pull out of all hedge funds, its managers are still waiting to retrieve roughly $150 million from Chatham Asset Management.