Money managers under the microscope
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.
Despite 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 may not have been a massive surprise, but ECB President Jean-Claude Trichet had an unwelcome message for hedge fund managers today.
The current crisis is, apparently, “a loud and clear call” to roll out regulation to all important market players, “notably hedge funds and credit rating agencies”.