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.
| FRANKFORT, Ky.
A Connecticut-based hedge fund that included $100 million in investments by the Kentucky Retirement Systems has failed and will shut down.
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.