Institutional Investors

GAO findings: HFs meeting pension expectations despite losses

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The Government Accountability Office (GAO) in the US recently issued a report on the reliance of pension funds on hedge fund and private equity investments, finding that both portfolio types met plan representatives expectations in recent years.

That being the case, a number of plans experienced losses and other challenges such as limited liquidity and transparency. A number of plan representatives disclosed peak annual hedge fund losses in 2008 or 2009 ranging from about 12% to about 25%.

Most of the 22 plan representatives interviewed said that their hedge fund investments met expectations overall – despite, in