alternative investments pensions

This post covers a theme I’ve discussed on many occasions over the past several years, namely how “alternative asset managers” are making enormous sums of money by ripping off public pensions as well as college endowments. Send this to anyone who naively tells you we live in a meritocracy. The sad truth of the matter, is we operate within an economy which incentivizes all of the worst types of behavior, where people can earn millions of dollars a year while failing.

Despite the at times disconcertingly polite tone, the SEC has now announced that more than 50 percent of private equity firms it has audited have engaged in serious infractions of securities laws. These abuses were detected thanks to to Dodd Frank. Private equity general partners had been unregulated until early 2012, when they were required to SEC regulation as investment advisers.
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