“…the reports posted by Oregon and other public pension funds routinely understate these risks, new research has found. The new findings are from Michael Markov, a mathematician who heads MPI, a financial technology company. He provided early warnings about the fraudulently consistent returns in Bernard L. Madoff’s Ponzi scheme. I’ve known Mr. Markov for years. And he now says that, on average, the risks being carried by public pension funds are at least 20 percent greater than they are reporting, largely because they aren’t taking account of the true risks embedded in private equity,” writes Jeff Sommer in his weekly column about MPI research focused on uncovering risks of public pensions. “His company uses proprietary statistical techniques to adjust for these lags and posts the results for individual pension funds on its website for everyone to see,” writes Sommer underscoring the importance of the MPI Transparency Lab.
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