The county pension fund might have just taken another huge blow to its hedge fund portfolio.

You might have heard the news today about this (from Bloomberg):

Feb. 25 (Bloomberg) — Two officers of WG Trading, a broker- dealer based in Greenwich, Connecticut, were charged with conspiracy in what federal authorities called a $550 million securities-fraud scheme dating back to 1996.

Paul Greenwood and Stephen Walsh were among four suspects charged today in Manhattan. In a related suit, securities regulators accused the two men, former minority owners of the New York Islanders professional hockey team, of misappropriating $554 million in client money to live a lavish lifestyle which included the purchase of horses, horse farms and automobiles.

According to its latest annual financial report, the San Diego County Employees’ Retirement Association had $76 million invested in this hedge fund and the pension fund paid it $679,000 in fees this year.

Stay tuned for more.

SCOTT LEWIS

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