Memo: Kentucky Pension Fund Ignored Advice About Hedge Funds
A new memo in a lawsuit over Kentucky's struggling pension fund says the fund lost public money on more than $1.5 billion in hedge fund investments in recent years, despite advisements that such investments were too risky.
The Lexington Herald-Leader reports attorney Ann Oldfather wrote in a memo filed Friday that the defendants made false assurances about the investments to KRS member and taxpayers and didn't publicize losses.
Oldfather represents eight public employees who filed a lawsuit against investment firms KKR & Co., Prisma Capital Partners, The Blackstone Group and Pacific Alternative Asset Management in December. Several current and former KRS trustees and executives are also named.
The defendants have filed individual responses denying wrongdoing.
KRS faces a $27 billion shortfall. Its board of trustees is considering joining the lawsuit.