Connecticut’s Bond Commission, chaired by Gov. Dannel Malloy, approved a $35 million incentive package as part of the state’s First Five jobs program for AQR Capital Management, one of the top three largest hedge funds in the world.
To the governor and the other seven members of the commission who approved the deal, they view it as a substantial down payment that ensures the state’s economic future.
“We don’t give money,” Gov. Malloy said. “We make investments.”
Tuesday wasn’t the first investment in a hedge fund even this year by the state. The commission approved $22 million for Bridgewater Associatates, the world’s largest hedge fund, which is headquartered in Westport, CT. AQR is based in Greenwich.
A pair of bond commission members voted against the entire package of projects. Democratic Comptroller Kevin Lembo and Republican State Senate Mike McLachlan from Danbury were the lone holdouts, citing concerns with the state’s budget, which according to the governor’s administration is in deficit of $1.3 billion.
Some with connections to state agencies that have seen cuts don’t like the work of the bond commission. They would rather see the money spent on investments, spent on services for those who need it most.
Jim Rutt is the legal guardian of more than 20 years for his brother Lewis. Lewis is deaf and from time to time acts out in his group home in South Windsor.
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Rutt says it’s not right when the state spends millions on hedge funds to keep them in Connecticut, while also making reductions, the way the state has, to programs for the state’s most vulnerable.
Rutt would rather see investments in more staffing for group home employees.
"And to put people who are just making minimum wage into the group homes that are taking care of people that can have violent outbursts, a number of issues, medical issues, to me is a danger to the people living in the group homes" he said.
The governor says the return on investment in the form of local property taxes, income taxes, and sales taxes will more than pay for the investment in AQR over time, which will help the rest of Connecticut’s economy.
“The retention of these high paying jobs, along with the expansion of those jobs, along with the capital investment to allow that to happen, will more than pay for this investment and do it very quickly.”
