Public Pensions Sour on Hedge Funds as Returns Drag

The video discusses the underperformance of hedge funds in the Massachusetts Public Fund and similar trends in other funds. It explores why pension funds invest in hedge funds despite mediocre returns, highlighting their appeal for long-term returns and reduced volatility. The video also examines how public pension funds are adjusting their return expectations and allocations, with some states reducing hedge fund investments. Finally, it addresses the potential for hedge funds to lower fees to remain attractive to investors.

What are some of the expectations pension funds have regarding hedge fund returns?

How are hedge funds responding to the dissatisfaction of pension funds with their performance?