Do hedge funds carry a corruption fee?


In general, many public pensions have embraced the direct-allocation approach and use of specialist consultants in the name of fee reduction

By Susan Barreto

It’s been more than a year since Hank Morris received a four-year prison sentence for his role in the placement agent scandal that brought to light ‘pay-to-play’ practices within the New York State Comptroller’s office, which oversees the state’s pension system.

Since the use of placement agents (a practice where managers pay politically connected agents to help them win mandates) came to light in New York roughly five years ago, it seems that more public pensions have focused on what they are actually paying their managers in both management and incentive fees.