Antonio Gracias, the CEO of Valor Equity Partners, has stepped down from his role at the Department of Government Efficiency (DOGE). This move comes after questions were raised about the potential risks his dual roles posed to the nine public pension funds that Valor manages, totaling nearly $2 billion in assets.

Gracias, a close associate of Elon Musk, had been working at DOGE while also managing investments for these pension funds. His departure from DOGE was confirmed by Valor in a response to Randi Weingarten, president of the American Federation of Teachers (AFT). Weingarten had expressed concerns about the potential conflicts of interest and the impact on the pension funds' investments.

During his time at DOGE, Gracias was involved in activities that some believe could have conflicted with the interests of the pension funds. He made allegations of voter fraud and criticized the Social Security Administration, claiming that large numbers of immigrants were receiving benefits. These claims were later found to be inaccurate.

Weingarten's letters to the pension funds highlighted the potential risks associated with Gracias' dual roles. She questioned whether his involvement with DOGE had affected the value of the funds and whether his primary focus remained on managing the investments.

Valor Equity Partners manages $17. 5 billion in assets, and Gracias has been a significant figure in the company since its founding in 1995. He is also an early investor in Tesla and has a substantial net worth, largely due to his shares in the company.

The pension funds involved, including CalPERS and CalSTRS, have acknowledged receiving the letters from AFT. They have stated that they monitor their holdings and engage with companies to address any risks in their portfolio.

Gracias' departure from DOGE raises questions about the transparency of his roles and the potential conflicts of interest. It also highlights the importance of ensuring that those managing public funds are fully committed to their primary responsibilities.

GOVERNMENT OFFICIAL RESIGNATION

A High-Profile Exit and Pension Fund Concerns

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