According to a Mercer Investment Consulting study- 1/3 of pension funds invest in hedge funds. But are they safe investments? On today’s "Street Signs" CNBC's Erin Burnett put that question to Damon Silvers, Associate General Counsel with the AFL-CIO -- and Cynthia Steer, Managing Director and Chief Research Strategist with CRA Rogers Casey.
Silvers said hedge funds are like a number of other risky investments – they are appropriate in small amounts. The problem, he said, is the regulatory framework has been weakened, first by the courts that knocked down the SEC rules requiring hedge fund registration – and then by the U.S. Congress that weakened IHRSA protection over pension money in hedge funds