Nutmeg State Seeks Pension Disclosure from Hedge Funds
According to reporter and financial professional Julie Fishman-Lapin, Connecticut could soon become less hedge-fund friendly if state legislators have their way.
In " State readies for a debate on regulation..." (Greenwich Times, February 9, 2007), Fishman-Lapin describes an initiative by Fairfield County Republican John E. Stripp that, if passed, would "require Connecticut-based hedge funds that receive more than $10 million from a pension fund to report the investment to the state banking commissioner within 30 days. The disclosure would include the name of the pension fund, the beneficiary organization and the address of the fund manager." Click here to read Proposed H.B. No. 5102, Session Year 2007 - An Act Concerning Hedge Fund Activity With Respect To Pension Funds.
Democratic state senator Bob Duff cites hedge fund disclosure requirements as part of his overall intent to focus on consumer protection. He will soon introduce a bill that likewise emphasizes disclosure. Click here to read his January 25, 2007 press release.
On December 5, 2006, addressing the U.S. Senate Committee on the Judiciary, CT Attorney General Richard Blumenthal urged federal regulators to increase penalties for fraud, raise the amount of money to qualify investors and adopt federal standards before states take matters into their own hands. Click here to read his remarks. Blumenthal is walking the walk, having formed the Hedge Fund Task Force last fall. The goal? To improve things and hopefully avoid an expensive Amaranth-type meltdown. (See "Hedge hunting season in Connecticut - In the wake of the Amaranth disaster, Connecticut Attorney General Richard Blumenthal seeks to reform the hedge fund industry" by Ellen Florian Kratz, Fortune, October 4, 2006.)
There is so much to write about the hedge fund - pension fund nexus. We will continue to focus on this important topic area. Until then, and in case you missed them, here are a few links to prior blog posts about hedge funds, along with links to some articles about hedge fund risk management and valuation.
Hedge Fund Notables for Pension Investors (December 29, 2006)
Hedge Fund Disclosure - Round Three (November 12, 2006)
Will Private Equity Stay Private? U.S. Dept. of Justice Makes Inquiries (November 5, 2006)
Pensions, Hedge Funds and Disclosure (October 27, 2006)
Legislative Matchmaker: Hedge Funds and ERISA (August 1, 2006)
Survey Shows That Institutional Investors Are Worried (July 28, 2006)
Will Hedge Funds Displace Pension Plans in Court? (July 9, 2006)
Hedge Fund Valuation: What Pension Fiduciaries Need to Know (Journal of Compensation and Benefits - July/August 2006)
Do You Know the True Cost of Your Retirement Plan? (May 14, 2006)
Hedge Fund Basics: Risk, Return and Reality (Family Foundation Advisor - January/February 2005)
Hedge Fund Imperatives (Hedge Fund Manager - December 2004)
