Wisconsin State Fund Gets Burned
A Wisconsin state fund said it lost $95 million in an unauthorized bet on the direction of Mexico’s currency and interest rates, becoming the latest government entity to lose public money on risky investments.
The $6.7-billion fund, which invests for the state, its retirees and about 1,000 local governments, suffered the biggest investment loss by a municipality since December, when a $1.7-billion loss hit Orange County.
Wisconsin, also known for its investments in leveraged buyout funds and high-risk biotechnology stocks, lost its money on derivatives tied to the value of Mexico’s peso and interest rates.
Jim Amundson, treasurer of Dane County, said he was surprised. Only a few months ago, state officials reassured him about the fund, which manages about $65 million of the rural county’s money, he said.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
