CA Comptroller Calls For Hedge Fund Disclosure

May 13, 2003 ( - California State Controller Steve Westly has asked the US Securities and Exchange Commission (SEC) to provide "reasonable safeguards" in the hedge fund industry.

Among the safeguards that Westly supports is increased disclosure for hedge funds. “I support more disclosure, transparency, and accountability for the hedge fund industry – not handcuffing the investment managers. The hedge fund industry is becoming a more important part of the investment landscape and we need to make sure that we protect pension funds and individual investors,” Westly said in a news release.

Westly’s concern is about the stability of hedge funds as pension fund investments and the potential costs to taxpayers.   “The SEC should step in and look out for the public interest,” he said in the statement.

The elected official does not have to look far to see the potential impact the loosely regulated hedge funds have on defined benefit plans.   Westly, sits on the board of two of the potentially biggest hedge fund investors in the country:   the $130 billion California Public Employees’ Retirement System (CalPERS) and the $90 billion California State Teachers’ Retirement System (CalSTRS).