If you are a giant public-employee pension fund and you are asking yourself, "Should I invest in hedge funds?" the answer is almost certainly "no." My colleagues Barry Ritholtz and Matt Levine have excellent columns up today on this, and I command everyone to go read them now. For those who are lazy and disobedient, however, I'll note a few highlights:
These observations are all prompted by Calpers' decision not to invest its money with hedge funds anymore. This is splendid news for all the people of California, though, of course, it will be a bit hard on the hedge fund managers. Notwithstanding the prospect of desperate fund managers having to fly commercial and sell the third home, other states should follow suit.