Kathianne
11-06-2010, 10:03 AM
Are we to believe they didn't know this Monday?
http://www.bostonherald.com/news/politics/view.bg?articleid=1294371
State money tied into probe
SEC eyes hedge fund backed by Barney Frank pal
By Jessica Van Sack | Saturday, November 6, 2010 |
The state’s pension portfolio for thousands of public employees has a $700 million stake in a hedge fund investment firm that is under investigation by the Securities and Exchange Commission for allegations it misled investors by claiming to be a women-owned business.
The firm, Pacific Alternative Asset Management Co. LLC, marketed itself as a firm run and owned by women in a male-dominated industry. Yet it was hedge fund mogul and Barney Frank pal S. Donald Sussman who in 2000 provided a $2 million loan to four entrepreneurs of the fledgling company, giving him a 40 percent stake in the investment manager’s parent company, Paamco Founding Partners Co. LLC.
Investors, including the Bay State’s Pension Reserves Investment Management Board, are concerned about the financial impact of the SEC probe as well as that of a recent lawsuit filed by Sussman against the firm.
“We’re currently doing our due diligence,” said David Kibbe, spokesman for the PRIM board. “The matter is under review.”
Paamco manages $700 million, or 1.5 percent, of the $45.9 billion pension fund, which holds the assets of the state employees’ and teachers’ retirement systems.
Some of Paamco’s clients have already taken action, according to the industry newsletter Pensions & Investments. A $7.1 billion Los Angeles-based retirement divested a day after the firm disclosed the SEC investigation to its clients, the newsletter reported.
Sussman made headlines last month when the Herald reported that U.S. Rep. Barney Frank flew to the Virgin Islands last Christmas on Sussman’s $25 million Dassault Falcon 2000EX luxury jet along with Sussman’s fiance, U.S. Rep. Chellie Pingree (D-Maine) and Frank’s partner James Ready.
The Herald reported Sussman is head of Paloma Partners, a company whose subsidiary received $200 million in the $182.3 billion bailout of insurance giant AIG.
...
http://www.bostonherald.com/news/politics/view.bg?articleid=1294371
State money tied into probe
SEC eyes hedge fund backed by Barney Frank pal
By Jessica Van Sack | Saturday, November 6, 2010 |
The state’s pension portfolio for thousands of public employees has a $700 million stake in a hedge fund investment firm that is under investigation by the Securities and Exchange Commission for allegations it misled investors by claiming to be a women-owned business.
The firm, Pacific Alternative Asset Management Co. LLC, marketed itself as a firm run and owned by women in a male-dominated industry. Yet it was hedge fund mogul and Barney Frank pal S. Donald Sussman who in 2000 provided a $2 million loan to four entrepreneurs of the fledgling company, giving him a 40 percent stake in the investment manager’s parent company, Paamco Founding Partners Co. LLC.
Investors, including the Bay State’s Pension Reserves Investment Management Board, are concerned about the financial impact of the SEC probe as well as that of a recent lawsuit filed by Sussman against the firm.
“We’re currently doing our due diligence,” said David Kibbe, spokesman for the PRIM board. “The matter is under review.”
Paamco manages $700 million, or 1.5 percent, of the $45.9 billion pension fund, which holds the assets of the state employees’ and teachers’ retirement systems.
Some of Paamco’s clients have already taken action, according to the industry newsletter Pensions & Investments. A $7.1 billion Los Angeles-based retirement divested a day after the firm disclosed the SEC investigation to its clients, the newsletter reported.
Sussman made headlines last month when the Herald reported that U.S. Rep. Barney Frank flew to the Virgin Islands last Christmas on Sussman’s $25 million Dassault Falcon 2000EX luxury jet along with Sussman’s fiance, U.S. Rep. Chellie Pingree (D-Maine) and Frank’s partner James Ready.
The Herald reported Sussman is head of Paloma Partners, a company whose subsidiary received $200 million in the $182.3 billion bailout of insurance giant AIG.
...