The California Public Employees Retirement System is investigating its oversight of hedge fund deals, The Wall Street Journal reports. The pension fund found that it had paid two hedge-fund advisers, UBS Alternative & Quantitative Investments and Pacific Alternative Asset Management, during a two-year period, when the firms were not under contract.
The advisers were paid a combined fee of $36 million, most of which went to UBS. The two firms have worked for CalPERS since 2003, but their contracts had expired even as they continued to advise the pension fund on hedge-fund investments over the past two years. Kurt Silberstein, in charge of CalPERS hedge-fund program, was placed on temporary leave and fined over the lapse.
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