Retirement funds in Kentucky lose big with hedge fund failure
Retirement funds for Kentucky state and local workers see $100 million loss after hedge fund fails. Official expects to recoup the retirement funds lost.
A Connecticut-based hedge fund that included $100 million in investments by the Kentucky Retirement Systems has failed and will shut down.Skip to next paragraph
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T.J. Carlson is chief investment officer for the Kentucky Retirement Systems. Carlson told the Lexington Herald-Leader that Arrowhawk Capital Partners of Darien, Conn., couldn't raise enough money from investors to succeed (http://bit.ly/wCj1l2 ).
Carlson said on Thursday that the retirement system expects to get its $100 million back as Arrowhawk carefully unwinds its portfolio. The system oversees $13 billion in retirement funds for state and local government employees.
Arrowhawk did not return a call seeking comment.
The decision to invest in Arrowhawk came under scrutiny in June when state Auditor Crit Luallen linked the fund to a middleman who received about $6 million in fees for arranging the investments.