The Reason Pension Plans Stick With Hedge Funds

A new report poses an interesting question: “Would public pension funds have fared better if they had never invested in hedge funds at all?”

This is a subject we have investigated numerous times. The conclusion of the report confirms our earlier commentary: a small number of elite funds generate alpha (market-beating returns) after fees for their clients while the vast majority underperform yet still manage to overcharge for their services.