Is Investing Pension Fund Assets in Hedge Funds a Breach of Fiduciary Duty?
Despite the fact that hedge funds remain an enigma to the majority of the country, more and more Americans are investing in them each year. Many of these new investments are direct investments in hedge funds made by wealthy investors who have enough assets to meet the minimum investment requirements set by funds. Increasingly, however, many others who do not meet these requirements are investing in funds nonetheless through various forms of indirect investments. Some of these indirect investments are made intentionally by investors who actively seek out the chance to participate in hedge funds, such as, for example, by investing in a fund of hedge funds. Of late, however, it has come to light that more and more Americans are becoming unwitting participants in hedge funds, most often as a result of their pension plan investing a portion of its assets in hedge funds. There are currently two schools of thought on the propriety of investing pension plan assets in hedge funds. On the one ha
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- Is Investing Pension Fund Assets in Hedge Funds a Breach of Fiduciary Duty?
