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Long Island News

NYS Financial Dept. Slams Comptroller Over Hedge Fund Fees

N.Y. State Comptroller Thomas DiNapoli
Mike Groll
New York State Comptroller Thomas DiNapoli at a news conference in February in Albany, N.Y.

New York’s Department of Financial Services blasted New York State Comptroller Tom DiNapoli’s office, saying it’s wasted almost $4 billion in fees to hedge funds.

DiNapoli manages the $180 billion taxpayer-funded retirement plan for state workers, which has about four percent invested with hedge funds. But a report by DFS says those investments performed worse and came with higher fees.

The comptroller’s office says hedge funds are an important part of a diverse portfolio. It also adds that it is in the process of negotiating lower fees.

Monday’s report is the latest in an ongoing feud between DiNapoli and Governor Andrew Cuomo. Earlier this year, DiNapoli issued a scathing report that said Cuomo’s tax break programs are a waste of money.