New York City’s pension fund for civil employees is weighing exiting its $1.5 billion portfolio of hedge fund investments because of lagging performance, high fees and the riskiness of the asset class.

A vote to terminate the funds, which include D.E. Shaw & Co., Brevan Howard Asset Management, and Perry Capital, will come as soon as Thursday, according to a person familiar with the matter. Hedge funds make up 3 percent of the civil employees’ fund’s $51 billion portfolio.  

“Hedge funds are charging exorbitant fees for high-risk and opaque investments” said New York City Public Advocate Tish James. ”Our public employees work hard for their money, and they deserve to know their investments are secure. We can and must invest responsibly and also honor our fiduciary responsibility.”

New York City may follow a September 2014 move by the California Public Employees’ Retirement System, the largest U.S. pension. Calpers divested its $4 billion portfolio saying the asset class was too expensive and complex.