NYC Pension Fires Breeden Capital Management

The Employee Retirement System board of trustees voted to terminate Greenwich, Connecticut-based Breeden Capital Management.

(September 23, 2010) — New York City’s $36 billion pension fund for civil service employees has fired a money management firm headed by former US Securities and Exchange Commission (SEC) chairman Richard Breeden, Bloomberg is reporting.

According to information obtained from the city comptroller’s office under a public records request by Bloomberg News, the Employees Retirement System board of trustees voted to terminate Breeden Capital Management. Currently, New York City Comptroller John Liu is reviewing the investments of the city’s five public-employee retirement funds. The pensions have fired at least six money management companies. “NYCERS has given notice to Breeden, in accordance with the terms of its investment agreement, to withdraw from the fund,” Lawrence Schloss, the city’s chief investment officer, said in an e-mail to the news service.

Breeden, which oversees $1.29 billion in assets, additionally manages money for the California Public Employees’ Retirement System (CalPERS) and Maryland’s State Retirement and Pension System. According to investment records for the quarter ending June 30, CalPERS has lost 4.5% investing with Breeden’s US fund since June 2006. The market value of California’s investment in Breeden’s U.S. fund was $347.9 million.

To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href=''></a>; 646-308-2742