[20070615]RS22679_养老基金投资对冲基金.pdf

1 For more information on regulation of hedge funds, see CRS Report 94-511, Hedge Funds:Should They Be Regulated?, by Mark Jickling.2 A “long” investment involves buying a stock today in order to sell it in the future; long investorsrealize a profit if the value of the stock rises. Alternatively, “short” investors sell stocks first andbuy them back at a future date; short investors realize a profit if the value of the stock declines. Brokers facilitate these transactions by loaning stocks to short investors who then sell them onthe market. When investors subsequently buy the stock back, they then return it to the broker.Order Code RS22679June 15, 2007Pension Funds Investing in Hedge FundsWilliam KlunkActuaryDomestic Social Policy DivisionSummaryThe proportion of U.S. corporate-defined benefit pension funds investing in hedgefunds has increased to 24% in 2006, up from 19% in 2004 and 12% in 2000. Althoughstatistics vary, total corporate pension fund assets allocated to hedge funds in 2006 was2.1%. Because of hedge funds risky nature, rapid growth, lack of oversight, and recentlosses, some wonder if they are appropriate investments for workers retirement funds.In 2004, the Securities