The US asset management company State Street is being sued by Dutch pension fund Stichting Pensioenfonds Medewerkers Apotheken (PMA) after a 120/20 strategy allegedly cost the fund a reported $76m.
The figure had been invested through the firm’s Europe Edge Fund, a 120/20 European equities fund that sought to outperform the MSCI Europe Index by engaging in limited short-selling of securities. The Dutch pension fund accuses State Street of mismanagement and deceit, claiming the asset manager transferred ownership of all the fund’s securities to ill-fated Lehman Brothers without their knowledge.
