Funds Hub

Money managers under the microscope

A question of trust?

January 18, 2010

Signs of big-ticket investments from pension funds — New York State Common Retirement Fund has backed emerging market debt manager Finisterre Capital with $250 mln.

RTXQPR6Despite 2008′s losses, pension funds are obviously keen to invest, perhaps because equity mutual funds lost them even more money than hedge funds during the crisis.

Just as interesting, however, is one of the possible reasons why the $126 bln NYSCRF chose Finisterre (whose assets fell as low as $420 mln in the crisis).

Performance aside, Finisterre claims one of the reasons it’s been able to attract money is because it didn’t put up gates, barring investor exits, during the crisis.

It’s still early, but maybe we’ll begin to see investors starting to shun those funds seen as having locked up their money just when they needed it most.

(Picture: Luke MacGregor. Investors are assessing how hedge funds behaved during storm of the credit crisis)

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