francisco retirement board while you were arresting a sill certainty public defender commissioner stansbury i'm speaking to you a this is public comment all right. number 2 for warren buffett totally agree no investments funds retirement funds should go into hedge funds number 3 i urge you all people in the room to read the investment for lack of due diligence if staff and the retirement board it is a great foundation for your loss thank you (clapping.) steve united public workers for action i think this issue of hundreds is a serious issue not only for the workers and retirees in the city and county of san francisco it was the hedge funds derivatives that created the collapse of our economy in 2008 one of the things that's happening a lot of people are saying the economy is going to have another fall because of the speculation we're talking about massive speculation now was did that that mean the hedge funds have a history of buying companies what do they do they steel the pension money of the folks and tell the workers they have 40 candle stick park their busting the unions it's a disgrac

clarity. >> that should be district to staff. >> supervisors are you asking staff or commissioner stansbury will the nature of the motion. >> okay. >> so that if the question is for me, the intent of the motion is to allow staff to read missouri move forward to get the resources in place but before that any investment represents this could be a lot more discussions about after all this i think that to consider one or the other where no infrastructure is in place several i think it maybe mr. coke erica address that how to proceed. >> if the board were to approve the 5 percent allocation not fund to fund or direct what we'll do is issue an rfp for a specialist consultant to be broad and on so exclude the fund to fund and the speciality so it is on. >> on mandate. >> which means come back california come in and back to the board; is that correct? >> yes. >> yeah. the hiring of the hedge funds consultant will be the same process that the board takes in hiring all their investment consultants that is a decision or recommendation brought back before the board to have a chance to interview or have

. >> commissioner stansbury. >> can everybody in the audience hear me okay. >> great to members of the public that are here today thank you for coming we've hired our concerns about a year ago we started this progress and several times made it a point to come out and talk to you there are many faces i've meet with in the past year some are for and some against hedge fund one overriding emotion i since is fear retirees will not receive that monthly pension check i know this looks like first hand but those who haven't heard the store story of 340e my parents they rely on a pension for the city of stockton when stockton filed burden of proof they're retired health care they expected to be there are for the rest of their life it has disappeared that's been decided in court the only question whether or not their continue to receive their monthly pension check and if so how much there are estimates they'll lose half their apprehension imagine in our mid 60s not having a lot of savings you expected your pension and retiree health care to be there and all of a sudden you have 30 no health care

hi, john, and also with me, steve sjuggerud, stansbury research strategist.people see apple go higher and higher, i get nervous, haven't we seen this movie before? >> seen it going back throughout market history. have you booms and busts in terms of sentiment from investors. people get pessimistic. you had me on at the heist ebola scare last year and everybody was worried that the markets were heading nar correction. and time again, what you see, folks who manage to stay the course, they disciplined as we do in prudent speculator newsletter, they get rewarded in the fullness of time. you enjoy periods like this. you will have difficult times in the future. but focus on the long-term and let that noise, that always seems to happen occur, and the great thing is that equities have historically returned 10-12% a year for those who stay with it. unfortunately, the average investor generally doesn't do that well. he or she is trading their account too much, and ends up buying high and selling low. >> we're looking at this one year dow picture, and there's a big dip