Retirement Board Votes to Increase Hedge Fund Investments- Against Local 21 Objections

Last week the CCSF Retirement Board voted to increase hedge fund investments from 5% – 15% as part of the tri-annual review of the plan’s asset allocation policy, citing the belief that it will provide better overall returns with less risk.

Unfortunately, the vote took place when Local 21-backed Board member Al Casciato was out on a pre-planned vacation. Local 21 staff member Amihan Makayan spoke out against an increase to 15% at the meeting, arguing that such an increase does not represent the will of city workers.

The Local 21 Hedge Fund Advisory committee previously endorsed investing up to 10% in hedge funds.

The change in investment will not happen overnight and is likely to be gradual. The vote in favor of 5% hedge fund investments occurred in 2015, but only 2.5% are invested in hedge funds to date.