Tadas has a nice recap piece on the BIG news that Calpers is sending their hedge fund managers to the scrapyard.

 

 But why so sad Calpers?

Well, the facts don't lie. Here are the summary statistics for the following indices from 7/1/2004 to 7/31/2014:

  • HFR Global Hedge Fund Index
  • S&P 500 Total Return Index
  • Russell 2000 Total Return Index
  • 10-year Total Return Treasury Bond Index

Hedge funds have been the biggest sucker bet of the past 10 years and Calpers finally got the drift.

hf

The results are hypothetical results and are NOT an indicator of future results and do NOT represent returns that any investor actually attained. Indexes are unmanaged, do not reflect management or trading fees, and one cannot invest directly in an index. Additional information regarding the construction of these results is available upon request.

The invested growth chart:

The results are hypothetical results and are NOT an indicator of future results and do NOT represent returns that any investor actually attained. Indexes are unmanaged, do not reflect management or trading fees, and one cannot invest directly in an index. Additional information regarding the construction of these results is available upon request.

The results are hypothetical results and are NOT an indicator of future results and do NOT represent returns that any investor actually attained. Indexes are unmanaged, do not reflect management or trading fees, and one cannot invest directly in an index. Additional information regarding the construction of these results is available upon request.

 

The evidence above might help explain why Calpers made their all-star cast of overpaid dart throwers jump off a bridge.

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