I find the Aug. 30 article “Kentucky pension system doubling down on hedge fund that lost money” very interesting from two aspects.
First,the Kentucky Retirement System not only continues investing with Prisma Capital Partners which returned an 8 percent loss to the system in 2015 but adds more money to Prisma’s care.
Second, a former Prisma employee who serves on the KRS board said he would not vote in the transaction. Just his presence on the board, along with another former Prisma employee who works for KRS, ought to be enough for the KRS board to reduce or eliminate that investment for poor performance and the hint of favoritism.
There is no excuse for continuing to reward poor performance, especially when there are better approaches to investing. For example, there are funds that return management fees if the fund does not produce a profit for one or two quarters. This is about the best of both worlds since they have an investment in your success.
Never miss a local story.
Well KRS board, what about it?
I have no business or family connection with KRS, its boardor any other retirement system in Kentucky. My only interest is from a taxpayer’s viewpoint — that I may have a diversion or increase in my taxes to cover their shortfalls.