Reportage, or, saddle up!

After foolishly inquiring whether there was any press in the room today at the Mid-Atlantic Hedge Fund Association, Orin S. Kramer, Chairman of the New Jersey State Investment Council, which presides over New Jersey's $72 billion dollar pension plan, disclosed that the council had yesterday been discussing (with no resolution, mind you) upping the $800 million currently actually placed in hedge funds to $3.8 billion, with a substantial portion of that (can't read handwriting) to go to single-manager funds, rather than funds of funds.

Jon Corzine is, reportedly, booyah for upping the state's allocation, even if the fee impact is substantial, which could be politically damaging if the returns aren't good. For the electorate, this represents the moral hazard of electing a guy who doesn't need to care if he gets reelected.

Kramer also said that the NJ pension plans funding shortfall present value, officially put at $18 bln, could easily go up to $25 bln or $30 bln if you tweak your assumptions a bit. Like, for instance, not assuming a 9.8% return on equities.

Such a nice guy.