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Comment by JumpCrisscross | Hacker News Reader

> might come as a shock to investors including Softbank Vision Fund, Singapore wealth fund Temasek and Ontario Teachers’ Pension Plan, who sunk $400 million into the exchange at a $32 billion valuation in January

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I swear Ontario Teachers' Pension Plan is one of the worst managed funds I've seen. Every time I see buzzy company with little fundamentals, their latest rounds always includes this pension plan.

Can someone explain their positions? Like if they want to move along the risk-reward curve, why not just buy fewer bonds and more ETFs? Why enter VC/crypto/etc?

I am guessing because they have over 200-250B in assets, they will have some occasional risky bets here and there that seems like a lot, but is only a small percentage of their overall portfolio.

I think it's just sampling bias? OTPP is one of the world's largest institutional investors, quarter trillion under management. Their investment into FTX represents like... 0.002% of available capital.

https://www.otpp.com/en-ca/investments/our-investments/teach...

(EDIT: 0.2% not 0.002%)

Show your work on the 0.002% calculation?

"$400M" / "a quarter trillion" = 0.002, or 0.2%. They probably messed up on the percentage translation?

https://en.wikipedia.org/wiki/Ontario_Teachers%27_Pension_Pl...

420M investment, 221B total (178 in TIP), 420/17800 = 0.0019

but math with percentages is hard and what I said was incorrect :) .19%

I think that still seems like a reasonable amount to put in based on risk guidance I've seen for individual investor portfolios, but is definitely much higher than what I implied with my original comment. Sorry!

How does one determine that 250bn is "one of the world's largest?" I just looked up a top 50 list and the lowest on the list is 333bn.

They are one of the best run pension funds in The world.

They manage billions, their bc portfolio is a small part of their holdings but it’s been a bit money maker for them.

My Favorite Ontario Teachers Pension Plan fun fact is that they own the Bristol, UK Airport: https://en.wikipedia.org/wiki/Bristol_Airport

"have earned an annual total-fund net return of 9.6% since the plan's founding in 1990"

9.6% sounds pretty stellar to me. This is much better than many funds.

Calpers' 30 year return is 7.7% annualized.

It sounds like a lot, but Ontario Teachers’ Pension Plan commands 200+ billions. Might have made some sense as a strategy.

How many teachers are there in Ontario?!

all these pension plans and retirement funds are sinking tons of money into Tesla stock up here too, you love to see it

softbank vision fund lmao, this fund is a joke that throws money at any "radical sounding" idea

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