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Brian Abbott
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In investing, I have a heavy focus on reinsurance companies, and I enjoy learning how to value their investment portfolio and underwriting ability, taking inspiration from the reinsurance companies that Warren Buffett used to help build Berkshire Hathaway's investing empire. The other focused... More
My company:
Montana Semi-Precious Metals
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  • Private Equity And Hedge Fund Bubble In Pension Funds? 0 comments
    Dec 30, 2012 2:00 PM | about stocks: TLT

    I was cruising around the internet looking for asset allocation ideas. Google took me to the Missouri Department of Transportation pension system page, of all places. Check out their private equity and hedge fund allocations as of 2011:MoDOT pension fund allocation

    The text in the link above also shows how their bond allocation has been decreasing and shifted toward these alternative asset classes. Understandably, pension funds are frustrated by Ben Bernanke's zero interest rate policy, but to shift into illiquid asset classes from something as relatively safe as bonds? That's either a super smart move, or a new bubble waiting to collapse.... time will tell.

    What do you think?

    Disclosure: I am long SPY.

    Additional disclosure: short TLT

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