MFA Blog

MFA President & CEO Richard H. Baker Responds to Wall Street Journal Op-Ed

Posted on February 2, 2018

In a Wall Street Journal op-ed (“Why Illinois Got Out of the Hedges,” op-ed, Feb. 1), Marc Levine criticizes the hedge fund industry, asserting that its “strategies seem better suited to generating publicity than great returns.” While I respect Mr. Levine’s opinion and his dissatisfaction with the Illinois State Board’s portfolio, many of his pension investor colleagues seem pleased with how hedge funds help them better meet the needs of the workers, retirees, and taxpayers who rely on their success. Hedge funds improve portfolio performance and diversify risk, important reasons why 72 percent of investors recently reported that their portfolios met or exceeded expectations in 2017, according to a new report from independent data provider Preqin.

While hedge funds may not fit into everyone’s portfolio, they continue to be an important tool for keeping the retirement income promises made to America’s workers. The firms that I represent participate in one of the world’s most intensely competitive industries, work hard to achieve the complex objectives of our clients and, we believe, have largely succeeded.

Richard H. Baker, President and CEO
Managed Funds Association