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Big Investors Warn Hedge Funds on Tapping Small-Business Aid

  • Pennsylvania public school system sent letter to its managers
  • Funds join consultant that cautioned against seeking U.S. aid
Trump signing things

Photographer: John Taggart/Bloomberg

Updated on

Institutional investors in Pennsylvania and Alaska are taking a dim view of hedge funds and other asset managers seeking to tap emergency U.S. government money designed for struggling small businesses.

Pennsylvania’s Public School Employees’ Retirement System is monitoring its managers -- as well as potential new ones -- to see if they took advantage of the rescue program. The Alaska Permanent Fund Corp. said it would view any manager taking assistance “quite negatively.” Some funds have already applied, Bloomberg earlier reported.