New York Subway pension loses over $300 million in collapsed hedge fund

Why do pension fund trustees keep doing this, and falling for one of the oldest games in the business? The $4.8 billion pension fund of New York’s Metropolitan Transportation Authority just became the latest to sue a hedge-fund manager after losing hundreds of millions of dollars in complicated financial vehicles that maybe nobody could understand. The MTA joins a list of woebegone pensions suing German financial giant Allianz over its “Structured Alpha” funds, which collapsed in the market turmoil earlier this year wiping out 97%—yes, really—of investors’ capital.

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HEDGE accordingly