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KRS Currency Speculator Is Going Down Fast

April 20th, 2012 · 3 Comments

Remember Record Currency?

The currency speculator that cost Kentucky Retirement Systems more than $100 million in fiscal year 2011? All while charging $7 million in fees?

Looks like everyone else is jumping ship and Record Currency is sinking fast:

Record shutters former flagship fund

Record Currency Management, once one of the loudest advocates for active currency management to institutional investors in the UK, has closed down its main active fund following several years of underperformance.

KRS ought to sue immediately to get some of that cash back. And it’s exactly what the KRS whistleblower’s attorney recommended in his recent report.

Recovering some of those millions from placement agents and bad managers should be a top priority.

Unfortunately, we all know KRS isn’t going to sue anybody because that would expose mountains of corruption.

Tags: Corruption · Flashback · Wasted Money

3 responses so far ↓

  • 1 Jimfkft // Apr 20, 2012 at 3:46 pm

    Wouldn’t the KRS board sue itself and demand its own removal, for failure to exercise its fiduciary responsibility? Nobody compelled the board to enter into risky ventures, and I would think that even a board with no financial experts knows that currency trading is risky. It would be interesting to know (and unfortunately, no reporter cares to find out) whether KRS is unique among state pension funds in such an investment.

  • 2 Chris Tobe // Apr 20, 2012 at 6:07 pm

    I the only investment expert on the KRS board was removed from the Investment committee in August 2009. I believe it was so that they could hire Record Currency and the start up Hedge Fund Arrowhawk in Oct. 2009. Record was kept secret from me and our auditors, not appearing in investment reports until August 2011 after it blew up and lost $100 million. Maryland is the only other public plan that was a victim of Record.

  • 3 Gil Albans // Apr 23, 2012 at 8:30 am

    Chris, is their a criminal aspect to this case? And would it be something the FBI should investigate through their public corruption side?