Hedge Fund-Blacklist Urging Pension Funds to Stay Away: Icahn, Cohen, Tepper and Loeb All On It

Here’s the full list:

Anthos Capital

Appaloosa Management

AQR Capital Management

Browfields Capital

Centaurus Advisors LLC

Clayton Capital Partners

Cohen, Klingenstein LLC

Court Square Capital Partners

Dimensional Fund Advisors

Donald Smith & Co.

Eagle Capital Management

Elliott Management

Gilder, Gagnon, Howe & Co.

HPB Associates

Icahn Enterprises

Invemed Associates

J. Fitzgibbons LLC

K2 Advisors

Khronos

Kiernan Ventures

Kingdon Capital Management

KKR & Co.

Mason Capital Management

Pennant Capital

Pergamon Advisors

Prescott Investors

SAC Capital

SLX Capital Management

Stone-Kaplan Investments

Third Point Capital

Tiger Global Management

Tudor Investment Corp.

VenRock

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Above the list, the following prompt is given by the AFT:

“Directors, managers, advisers and executives of funds below have contributed to, or sit on the governing board of, an organization that advocates for the replacement of defined benefit plans with defined contribution or cash-balance plans.”

What are the implications?

At Insider Monkey, we track 450-plus of the world’s most elite money managers, which manage an estimated 75-80% of the hedge fund industry’s entire asset base. The AFT’s list not only has the ability to affect visible players such as Dan Loeb and Third Point, but it may also harm the likes of David Tepper’s Appaloosa, Carl Icahn, Steven Cohen, and all 33 funds mentioned here.

If an organization who appears to be potentially on the edge, like the Illinois State Board of Investment, decides to pull out of the funds mentioned on the AFT’s list, it’s quite possible that we’ll see a domino effect, with pension funds like the Ohio Public Employees Retirement System following suit.

The largest hedge fund investor, the Teacher Retirement System of the State of Texas, holds an approximated $10 billion, or about 9% of its assets, in the industry according to data from Pensions & Investments.

We’ll be watching Texas, Ohio and Illinois very closely, and it’s likely that the hedgies mentioned on this list will be too.

For more information on the equity strategies of the funds mentioned above, continue reading here.