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Louisiana Pension Fund Stands to Lose Millions from Fletcher Investment

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A series of Lousiana based Pension Funds including: (1) Municipal Employees’ Retirement System, (2) Firefighters’ Retirement System, (3) The New Orleans Firefighters’ Pension and Relief Fund stand to lose substantial parts of more than the $100 million they invested in Fletcher Asset Management.  Fletcher Asset Management is headed by Alphonse "Buddy" Fletcher, Jr. .  Fletcher has been embroiled in a long standing legal battle with the Dakota building where he resides in NYC, http://nyp.st/faW9tb The New Orleans Times Picayune reports:

"  The arrangement, which officials say is similar to others that the Firefighters’ Retirement System and Municipal Employees’ Retirement System have invested with in the past, promised a guaranteed 12 percent return on their money. If the return dipped lower, the difference would be made up by $50 million put up by a third-party investor that was advised by Citco Fund Services, an independent hedge fund administrator." 

and

 "In March 2011, almost three years after investing $45 million in Fletcher, trustees of the Firefighters’ Retirement System learned that the value of the holdings had grown to $63.7 million. Days later, they filed a request to cash out $17 million of their investment to capture a portion of the profit.

That same month, the Municipal Employees’ Retirement System made a similar request, to redeem $15 million."

 and 

"In May, lawyers for the three pension systems also petitioned the Cayman Islands court to force Fletcher’s "master fund," Fletcher International Ltd., into liquidation. "This is where the real assets are at," Stockstill said."

The Times Picayune does not disclose if the consulting firm involved in the recommendation, Consulting Services Group of Memphis, are still employed.  Louisiana tax payers may be on the hook for the more than 3% of the pension funds that seem to have disappeared in the hedge fund controversy.

More information can be found here – http://bit.ly/NSVvmw or here – http://nyp.st/TILk4i

More information about Fletcher can be found here – http://bit.ly/cMMIo

 

                         ********  IvyPlus Fund Business Development Event – http://bit.ly/LwG8ka   ****** 

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