Taking Stock of Aldus Equity’s Quickly Diminishing Client List

Since Aldus Equity and its founder, Saul Meyer, was accused of paying kickbacks for private equity commitments last week, the firm has vehemently attacked the accusations, calling the SEC’s actions wrong, careless, and “an ambush lawsuit.”

But the actions of Aldus Equity’s clients have spoken louder than the firm’s words. In the last week, four of the firm’s clients have severed their advisory relationships with Aldus Equity. Four more have announced they were in the process of evaluating such a move. Of Aldus Equity’s publicly disclosed clients, only one, San Antonio Firemen’s & Policemen’s Fund, has not made an announcement regarding its relationship with the firm.

Here’s the breakdown of which pension funds have taken which action to date:

Under evaluation:

  • New Mexico Educational Retirement Board – suspended new investments, may hold a special board session before its June 26 meeting to decide whether to fire Aldus.
  • Los Angeles Fire and Police Pensions – plans to decide at meeting on May 7.
  • Teachers’ Retirement System of Oklahoma – has suspended new investment activity during review process.
  • Louisiana State Employees Retirement System – has suspended new investment activity while under review.
  • Fired:

  • NY Common Retirement Fund
  • State of Connecticut
  • New Mexico State Investment Council
  • Fort Worth Employees’ Retirement Fund
  • Dropped from Consideration for advisory role:

  • California Public Employees Retirement System
  • Not Yet Dropped:

  • San Antonio Firemen’s & Policemen’s Fund
  • Regarding the State of Connecticut’s decision to fire Aldus Equity yesterday, the firm’s attorney Matthew Orwig issued a statement: “Understandably, clients are concerned, but the charges in the government’s public statements and filings are baseless.”