Monday, August 2, 2010

Former Private Equity Man Wants to Control New York State Money

Former Blackstone Group principal Harry Wilson is the Republican candidate in this November's election to run the state's pension as State Comptroller.

The state as of March 31 had 9.3 percent of its $133 billion invested in private-equity funds, and another 9 percent in other "alternative investments" like real estate and hedge funds, reports NyPo.

Wilson claims he would lower the amount that NY invests with PE and alternatives.

Most PE firms, he said, do not outperform the S&P 500 after fees.

"I'm not a big believer in alternatives," Wilson told NyPo. "I don't own a lot of alternatives in my portfolio."

"To outperform the markets is hard and then when you charge large fees on top of that it is really hard."

But is this talk just about narrowing the number of PE's that get NY state money?

He also told NyPo that  he would maintain relationships with those firms that have proven they can beat the market, but believes that is not the norm.

1 comment:

  1. Why doesn't he spend his effort trying to get his own company's stock up? His company IPO'd and crashed.