A bill that would bar the $15 billion New Mexico State Investment Council from making future hedge fund investments will not be considered in the current New Mexico legislative session, which ends Thursday. The sponsor, state Rep. Teresa A. Zanetti, said she will introduce another bill next year that would ban future hedge fund investments by the council, the $15 billion New Mexico Public Employees Retirement Association and $9.6 billion New Mexico Educational Retirement Board. All three funds are based Santa Fe.
Before the start of the next legislative session Dec. 15, a joint committee of the House and Senate will look into all three plans hedge fund exposure, valuation methods, liquidity and the amount of leverage used, Ms. Zanetti said in an interview. She might also eventually look at the three funds private equity investments because, like hedge funds, those investments are not regulated, not transparent and are riskier, she said.
Hedge funds dont hedge any longer, and are too risky for the three state funds, Ms. Zanetti said.