The New York City Employee Retirement System, or NYCERS, has at least $565 million invested in three hedge funds that own chunks of Puerto Rico’s debt, according to a new report by the group Hedge Clippers.
“It’s a moral stand against investing in things that are going to harm the Puerto Rican people,” said Julio Lopez, a member of the group who’s from the island.
Puerto Rico is drowning in $72 billion of debt, a sum its government says it can’t pay.
But a group of hedge funds that are owed cash says the commonwealth can manage the debt — pushing officials there to cut spending by getting rid of teachers, slash health and welfare benefits, and collect more taxes.
Ricardo Arduengo/APA private security guard sits in front of a closed down business in the colonial district of Old San Juan, Puerto Rico, Sunday, Aug. 2, 2015.
New York’s public workers pension fund, which meets this week, has big bucks invested in Fig Tree Partners, Brigade Capital Management and D.E. Shaw Group.
“It’s becoming an accomplice to what these hedge funds are doing,” Lopez said.
Women leave a clothing store with a big sign reading "Store Pretty, total closing down sale, take advantage" in Arecibo, Puerto Rico, June 29, 2015.
by Erin Durkin
Pressure to divest NYC pension from Puerto Rico investors
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