The Libyan Investment Authority lost millions investing in hedge funds, according to a KPMG report seen by the New York Times.
The worst losses came from Permal, an off-shoot of Legg Mason, and a Dutch Palladyne fund, which was managed by the son-in-law of the head of Libya’s state oil company, according to the WSJ.
Here’s a run down of the losses & fees, according to the NYT:
- Permal (of Legg Mason): lost 40% of its $300 million value from January 2009 to September 2010, received $27 million in fees
- Palladyne fund (a Dutch firm): lost $30 million; charged $18 million in fees (and the fund performed 39% below a worldwide index of similar funds, according to the NYT)
- BNP Paribas produced “low returns,” earned $18 million
- Credit Suisse produced “low returns,” earned $7.6 million
- Notz Stucki (a Swiss firm): produced “low returns,” earned $5 million
Libyan officials wrote in a report on the losses, “Consistently negative performance since inception” and “Very high fees for no value.”