Partner Paper: Billionaires Have Fueled Andrew Cuomo’s Political Career

Download PDFDownload Billionaires Have Fueled Andrew Cuomo’s Political Career 49 Billionaires worth a combined $280 billion have made more than $4 million in individual donations to New York Governor Andrew Cuomo. New York State Governor Andrew Cuomo is famous for his massive campaign war chest, funded by some of the state’s wealthiest residents and businesses....

Partner Report No. 6 with AFT: The Big Squeeze: How Money Managers’ Fees Crush State Budgets and Workers’ Retirement Hopes

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Introduction Over the last several decades, U.S. public pension funds have undergone a dramatic shift in investment strategy, with traditional stocks and bonds increasingly displaced by “alternative” investments, mainly hedge funds, private equity and co-mingled “real assets.”[1] The typical public pension fund now has nearly a quarter of its portfolio invested in alternatives[2]—structured as private, co-mingled funds that are generally less regulated,[3] more opaque, [4] volatile and, most significantly, charge much higher fees to investors.[5] Hedge fund, private equity and co-mingled real asset managers typically use the “2 and 20” fee model, charging pension funds an annual management fee equal to 2 percent of assets under management, regardless of performance, as well as a performance fee (also called carried interest) based on the profit from the investment, sometimes after a hurdle rate or high water mark[6] has been met....
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