Raimondo criticized for keeping hedge fund consultant dropped by Massachusetts

Source: Randal Edgar, Providence Journal, June 26, 2014

General Treasurer Gina Raimondo is standing by the state’s hedge fund consultant, even if her counterpart in Massachusetts has decided it’s time for a change in direction. Raimondo, who chairs the State Investment Commission, said through a spokeswoman Wednesday that there are no plans to part with Cliffwater LLC, the California-based firm that began advising Rhode Island officials — and, coincidentally, Massachusetts officials — in 2011….Now, Massachusetts plans to pursue “separately managed accounts” in which the state, rather than invest in existing hedge funds, would hire an account manager who invests the money in the state’s name, giving the state more control over, and potentially lower, fees….Siedle, noting moves in California and elsewhere to shift from hedge funds, questioned why Raimondo would stand by that strategy when financial figures, such as billionaire Warren Buffett, are recommending against it….