Florida rolls the dice with chunk of pension funds

[Dr.Phool]

Source: St Pete Times.

Chasing bigger investment returns, the agency that manages Florida's $113.8 billion public pension fund wants to make far riskier investment bets.

The state wants to reduce the pension fund's holdings in publicly traded stocks and bonds and triple its allocation to hedge funds and other private investments that are less liquid and harder to value.

Earlier this month, the head of the State Board of Administration told his bosses that rearranging the state's portfolio would benefit the nearly 1 million public employees and retirees who depend on the fund, as well as the taxpayers who underwrite the system.

"We will probably have a slightly higher level of return, with a slightly lower level of risk," SBA executive director and chief investment officer Ash Williams told Gov. Charlie Crist, Chief Financial Officer Alex Sink and Attorney General Bill McCollum.

All three voted to approve Williams' plan after a few questions from McCollum and Sink and no comment from Crist. The Legislature still must approve the expansion of the alternative asset class.

(snip) much more at link

Read more: http://www.tampabay.com/news/business/florida-rolls-the-dice-with-chunk-of-pension-funds/1103657

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Just when you thought Florida had already overdosed on the stoopid, they find another 8-ball to smoke.

Sink and McCollum want to be Governor? Sink should know better. She's a former BoA exec.

Have these idiots learned nothing?

[ozymandius]

1. Jeb Bush's economic miracle was all bubble.

Nothing but bubble. And now it has popped.

I have great confidence that the state legislature will throw good money after bad. It's what Republican cronies do. Maybe we could think of this as the wish-come-true for their intoxicated dreams for privatizing Social Security.

[bahrbearian]

2. Bubble? I thought it was a Fart.

[metapunditedgy]

3. That is total BS. I've been through this... "A little extra yield" means

"This is how we rope in the suckers."

Do a google search for "yield lawsuit" and see what pops up...

Somebody is trying to make big kickback money on this... some investigative journalism is warranted.

[SILVER__FOX52]

4. This is unacceptable risk....

putting these funds at risk like this is incompetent and maybe criminal.

[lib2DaBone]

5. As long as Naked Derivatives are legal... Hedge funds will steal.

Jeb Bush and the Repukes know that Obama will not stand up to them.

[glinda]

6. Isn't it the big jackpot with all the retirees? Man, this is scary.

[Mika]

7. They were throwing money from the same fund into Enron as it was collapsing.

Hundreds of millions.

Criminals.

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[Ratty]

8. OK, and if this all crumbles

I want to hear the right wingers keep insisting this is what we should do with social security. I'll bet they'll be as insistent as they are right now with their chants of drill baby drill. What? Is that a pin dropping I hear?

[Po_d Mainiac]

9. crickets

[dipsydoodle]

10. With a pension fund at $113.8 billion

the chances that none of it is with BP are just about nil.

[BeFree]

12. So

BP has screwed over millions of people, here and abroad?

When are the Brits gonna demand justice?

[Ruby the Liberal]

11. Pension Fund and Hedge Fund should be mutually exclusive.

They should never be uttered in the same sentence unless the question is "what is the worst idea ever for Pension investing"?

[indypaul]

13. A slightly higher return with a slightly lower risk?

Next we intend to repeal the law of gravity.
Ain't gonna happen.

[KurtNYC]

14. This ought to work just as well as their investment in Enron stock

In late 2001, Florida bought $335 mil in Enron stock as others were dumping it.

They bought at $82/share and sold at 28-cents.

Hmmm, ...now who would benefit from such a thing???


http://www.whoseflorida.com/Florida%27s%20ENRON%20stock.htm

[raccoon]

15. Some other good stuff from that link:

"We will probably have a slightly higher level of return, with a slightly lower level of risk," SBA executive director and chief investment officer Ash Williams told Gov. Charlie Crist, Chief Financial Officer Alex Sink and Attorney General Bill McCollum...

Several financial experts said that expecting higher returns with lower risk is as realistic as promising weight loss on an all-you-can-eat diet.

"It's basic Finance 101: There's no such thing as reducing risk and increasing return," said Lawrence Weinman, a financial adviser in Los Angeles who teaches endowment investing.

This Ash Williams is a real piece of work. ANYBODY who knows ANYTHING about investments knows better! Either he is (1) a fool, or (2) a lying scumbag. I suspect # 2.

Also, the comments on the article are pretty interesting.

[AngryAmish]

16. Florida....