I don't think this will end well.
Public pension funds have been doing something new in recent years — investing in hedge funds.
Hedge funds are often secretive investment firms led by supposedly supersmart fund managers. Though, sometimes they implode spectacularly — think Long-Term Capital Management. Another prominent firm, Galleon Group, recently got shut down for rampant insider trading.
Those may be rare examples, but one thing that's true about nearly all hedge funds is that they charge high fees. And some experts are questioning whether public pension funds should be investing this way.