Masters in Business

BONUS: NY Comptroller Candidate Drew Warshaw on Changing the NY State Pension Funds

February 11, 2026

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  • Drew Warshaw's campaign for New York State Comptroller centers on leveraging the office's financial power to address New York's affordability crisis, particularly through reforming the state pension fund management and aggressively returning unclaimed funds to citizens. 
  • Warshaw criticizes the incumbent Comptroller's management of the nearly $300 billion New York State Pension Fund, arguing that paying high fees to 664 active managers who have underperformed benchmarks has cost taxpayers billions in subsidies. 
  • Warshaw proposes shifting the pension fund's investment strategy from active management to low-cost index funds, focusing instead on asset allocation, and suggests using the Comptroller's audit authority to target systemic issues like the state's building code, insurance regulation, and utility oversight. 
  • The provided transcript segment primarily consists of advertisements for luxury travel and resorts (The Ritz-Carlton Yacht Collection and Baha Mar) and a concluding Spanish-language health segment, rather than content related to Drew Warshaw or the New York State Pension Funds discussed in the episode "BONUS: NY Comptroller Candidate Drew Warshaw on Changing the NY State Pension Funds" of the podcast "Masters in Business". 
  • The host, Barry Ritaltz, concludes his segment of "Masters in Business" around the (1:04:35) mark. 
  • The final portion of the transcript features a Spanish-language segment sponsored by GSK discussing shingles (culebrilla) and related health concerns. 

Segments

Warshaw’s Background and WTC Role
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(00:02:48)
  • Key Takeaway: Drew Warshaw served as chief of staff to the head of the Port Authority starting in 2008, helping to resolve dysfunction and rebuild the World Trade Center site, including securing Condé Nast as an anchor tenant for One World Trade Center.
  • Summary: Warshaw’s initial career path was public service, working for Governor Eliot Spitzer until his resignation in 2008. He then joined the Port Authority to manage the complex reconstruction of the World Trade Center site, which was still a 16-acre hole seven years after 9/11. Over four years, his team opened the memorial by the 10-year anniversary and renegotiated the real estate deal with Silverstein Properties.
Transition to Business and Housing Crisis
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(00:06:20)
  • Key Takeaway: After government service, Warshaw pivoted to the private sector, building a renewable energy platform for a Fortune 250 power company, before focusing on the domestic policy crisis of housing affordability.
  • Summary: Warshaw left government to broaden his foundation, attending business school and then joining a power company to build its renewable energy investment platform. He shifted focus from climate change to the housing affordability crisis because the home is the centerpiece of a good life. He noted that one in seven NYC public school students are homeless, indicating the severity of the domestic policy crisis.
Barriers to Housing Supply
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(00:11:46)
  • Key Takeaway: The housing crisis is driven by massive undersupply, exacerbated by bureaucratic complexity, outdated building codes, and NIMBYism, which creates economic self-interest among incumbents to block new supply.
  • Summary: The country faces a shortage of millions of homes, and building affordable housing is nearly impossible due to complex financing structures and outdated building codes, which Warshaw calls the ‘silent killer’ of affordable housing. Incumbent homeowners are economically incentivized to oppose new supply, though studies show new housing does not cause property values to plunge.
Defining the Comptroller Role
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(00:15:34)
  • Key Takeaway: The New York State Comptroller is a powerful, singular role encompassing the state’s chief financial officer, chief auditor, and chief investment officer for the nation’s third-largest public pension fund.
  • Summary: The Comptroller is one of three statewide elected positions in New York, combining financial oversight, auditing of state tax dollars, and management of the nearly $300 billion pension fund. Warshaw argues the current incumbent has kept the position ‘well below the radar,’ failing to flex its power to address the state’s raging cost and affordability crises.
Pension Fund Governance and Underperformance
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(00:18:45)
  • Key Takeaway: The New York State Comptroller is the sole trustee of the pension fund, a structure Warshaw believes concentrates too much power and suggests should be replaced by a board structure, albeit one carefully designed to avoid politicization.
  • Summary: Unlike the NYC Comptroller who reports to five fiduciary boards, the NY State Comptroller reports only to himself as the sole trustee, a structure shared by only one other small state fund. Warshaw advocates for a board structure to diffuse concentrated power, emphasizing that corporate governance is critical for managing the fund responsibly.
Pension Fund Waste and Taxpayer Cost
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(00:27:53)
  • Key Takeaway: Warshaw claims the current pension fund management has resulted in a $59.1 billion subsidy from taxpayers over 18 years to cover the underperformance of high-fee Wall Street managers.
  • Summary: The current strategy pays $1.1 billion annually in fees to 664 investment managers who have underperformed market benchmarks by 39% net of fees. This underperformance forces New York taxpayers to contribute billions extra to ensure the fund remains fully funded, a cost Warshaw terms the ‘Denapoli tax.’
Proposed Pension Investment Strategy
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(00:31:55)
  • Key Takeaway: Warshaw proposes replacing the 664 active investment managers with a diversified set of low-cost index funds to capture market returns and save taxpayers billions in fees.
  • Summary: The current system of hiring hundreds of active managers is deemed an expensive failure, effectively creating the ‘most expensive index fund in the world with the worst tracking error.’ By focusing on asset allocation and using low-cost index funds, the fund could earn better returns, lower fees, and reduce property taxes.
Audit Focus: Insurance and Utilities
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(00:47:24)
  • Key Takeaway: Warshaw plans to concentrate audit authority on three key areas: the Department of Financial Services (insurance regulation), the Public Service Commission (utility monopolies), and the state/city building code.
  • Summary: The Comptroller’s audit power extends to anything touching a state tax dollar, allowing focus on efficacy rather than just financial statements. Warshaw wants to audit the DFS due to skyrocketing property insurance costs and the PSC because utility monopolies are failing, citing a proposed 36% rate increase by Rochester Gas and Electric as evidence.
Audit Focus: Building Code Reform
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(00:52:19)
  • Key Takeaway: Warshaw intends to audit the building code, proposing a model code estimated to strip 15% of construction costs, which he would present to city and state leaders as a concrete step toward affordability.
  • Summary: The building code is identified as the ‘silent killer’ driving up construction costs across New York. The proposed audit would deliver a track-change version comparing the current complex codes to a simpler model, offering a direct path for policymakers to reduce building expenses.
Defining Success as Comptroller
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(01:00:56)
  • Key Takeaway: Success in the Comptroller role means ending taxpayer subsidization of underperforming pension managers, deploying a $10 billion housing fund to create 100,000 affordable homes, and automatically returning the $20 billion in the Unclaimed Fund to New Yorkers.
  • Summary: Warshaw aims to relieve taxpayer pressure by changing the investment strategy and using capital to address the housing crisis through a dedicated $10 billion housing fund. A key metric of success is decommissioning the complicated Unclaimed Fund website to automatically return citizens’ money, which has nearly tripled under the current administration.
Host Sign-off and Credits
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(01:04:30)
  • Key Takeaway: Barry Ritaltz concludes the “Masters in Business” broadcast on Bloomberg Radio.
  • Summary: Barry Ritaltz formally concludes his hosting duties for the episode of “Masters in Business” on Bloomberg Radio. The segment ends shortly after the (1:04:30) mark, transitioning immediately into promotional content.
Ritz-Carlton Yacht Collection Promotion
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(01:04:39)
  • Key Takeaway: The Ritz-Carlton Yacht Collection offers all-inclusive luxury voyages to destinations like the Amalfi Coast, Thailand, and Alaska.
  • Summary: The promotion highlights the brand as the world’s first luxury hospitality brand at sea, emphasizing personalized, all-inclusive voyages. Experiences include dining from Michelin-starred chefs and direct access to water activities via an exclusive marina platform. Further details are available at RitzCarltonYachtCollection.com.
Baha Mar Destination Showcase
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(01:05:22)
  • Key Takeaway: Baha Mar in Nassau, Bahamas, features three distinct luxury hotels: Rosewood, SLS, and Grand Hyatt.
  • Summary: Baha Mar offers over 45 dining and lounge venues, including contributions from chefs like Daniel Belude and Marcus Samuelson, alongside the John Batiste Jazz Club. Family attractions include the 15-acre water park, Baja Bay, and interactive wildlife experiences like a daily flamingo parade. The destination provides world-class golf, tennis, and spa facilities.
Spanish Health Segment on Shingles
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(01:06:21)
  • Key Takeaway: A Spanish-language segment, sponsored by GSK, discusses the high prevalence of the shingles virus in people over 50.
  • Summary: The segment notes that approximately 90% of people over 50 already carry the virus that causes shingles (culebrilla). It emphasizes the painful nature of the eruption, which can make even simple tasks challenging. This health information is presented as part of a sponsored message from GSK.