So I know nothing about this stuff. But Michael Riley does. And, in his GoLocalProv column today (and previously), he says this was a big mistake by then-General Treasurer Gina Raimondo when she was managing the state’s pension fund.
A few weeks back Magaziner touted his recent competitive bond auction as an obvious fix saving RI taxpayers millions of dollars. He said it had not been done in 10 years. OUCH!
That backhanded criticism of Raimondo’s debt management in the years prior to Seth Magaziner had to sting. Didn’t Raimondo understand competitive auctions or did she prefer to direct underwritings to donors or future donors?
Mr. Riley is also very concerned about and recommends that General Treasurer Magaziner rid the state pension fund of
all high fee hedge funds, Private Equity funds and high fee Real Estate investments
Apparently, the first item, at least, was added to the state pension fund by G.T. Raimondo. One thing Governor Raimondo supposedly has is good financial chops. But even that is looking shaky at this point. And this is not good as it is Rhode Island taxpayers who are on the hook for the mistakes and failings of her tenure as General Treasurer.