Retirement funds in Kentucky lose big with hedge fund failure
Retirement funds for Kentucky state and local workers see $100 million loss after hedge fund fails. Official expects to recoup the retirement funds lost.
Retirement funds for Kentucky state and local workers see $100 million loss after hedge fund fails. Official expects to recoup the retirement funds lost.
A Connecticut-based hedge聽fund聽that included $100 million in investments by the Kentucky聽Retirement聽Systems has failed and will shut down.
T.J. Carlson is chief investment officer for the Kentucky聽Retirement聽Systems. Carlson told the Lexington Herald-Leader that Arrowhawk Capital Partners of Darien, Conn., couldn't raise enough money from investors to succeed (http://bit.ly/wCj1l2聽).
Carlson said on Thursday that the聽retirement聽system expects to get its $100 million back as Arrowhawk carefully unwinds its portfolio. The system oversees $13 billion in聽retirement聽funds聽for state and local government employees.
Arrowhawk did not return a call seeking comment.
The decision to invest in Arrowhawk came under scrutiny in June when state Auditor Crit Luallen linked the fund聽to a middleman who received about $6 million in fees for arranging the investments.