A hedge fund that manages $200 million in New Jersey public pension money also has a financial stake in Revel, Atlantic City’s newest and sleekest casino hotel, a Star-Ledger review of records from the state Division of Gaming Enforcement and Treasury Department shows. It’s a gamble that has put a share of public workers’ retirement income at risk if the struggling resort fails.
Industry analysts say the prospect of Revel failing is not far-fetched. Last month, the $2.4 billion resort that opened in April was forced to seek $100 million from lenders amid disappointing gambling profits and complaints from vendors and builders that it was not paying its bills.
Andy Pratt, a spokesman for the Treasury Department, said the investment in Revel posed little threat to retirees and the $69.9 billion pension fund. He said the $200 million from the hedge fund represents less than 1 percent of the state’s total investment portfolio, and that the funds were sufficiently positioned to absorb any Revel loss.