Investigating the Pension

Interesting:

• City Hall's inspector general has begun investigating how at least three city pension funds came to make investments with a firm co-owned by a nephew of Mayor Richard Daley, the Tribune has learned.

  The office of Inspector General David Hoffman has subpoenaed records from the pension funds dealing with their investments of tens of millions of dollars in DV Urban Realty Partners, a real estate investment firm formed by a top Daley ally, Allison Davis, and Daley nephew Robert Vanecko.

  The inspector general requested records on those investments from the funds for municipal employees, police and laborers, according to a source. The pension funds have paid the investment group hundreds of thousands of dollars in management or consulting fees.

And frightening:

• Police pension fund executive director John Gallagher said that DV Urban Realty so far had drawn $5 million on the fund's original $15 million commitment; as of the end of last year, that $5 million investment was valued at $3.5 million. He declined further comment.

So the investment has already tanked 30%. Good job Gallagher. Was that your secretary who's tuition we were paying? What else are you spending money on? Because it certainly isn't professional investment managers.