Submitted by (Prof.) John Tepper Marlin, Feb 8, 2007 03:47

My point was that Mr. Citron's investments in hedge funds bankrupted Orange County whereas Harvard's investments in hedge funds under Jack Meyer made money for the Harvard endowment. The question I asked was whether the New York City experience would be more like Orange County or like Harvard. Mr. Moorlach does not argue with my underlying point and in fact supports it. I am grateful for his confirmation.

Mr.Moorlach's distinction between the Orange County Treasury from the pension fund is a useful historical fact but in the New York City case is not relevant, because - a fact that Mr. Moorlach doesn't appear to be aware of - if the NY City pension funds lose money the City of New York pays the difference, under a provision that is enshrined in the New York State Constitution.

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