The Pittsburgh Post-Gazette reported that the $600-million pension fund had hired a consultant to find out why it had $18.2 million remaining in what was originally a $23 million account at Advanced Investment Management.
Board executive director Cheryl Bateman told the Post-Gazette that the fund had hired Pittsburgh consultant Yanni Partners to study Advanced’s activities with its money. Almost $5 million in losses may turn out to nothing out of the ordinary – given the stubborn bear market of late, Bateman told the newspaper.
Advanced has been in hot water for the past month or so, as a series of at least five clients reportedly fired it for allegedly improper trading.
Former chief executive and CIO Thomas Allen left his posts because of the growing problems, after releasing a statement denying that Advanced had done anything wrong.