No Reason Given for Departure of Investment Chief at Yale New Haven Health

Scott Lupkas, who became vice president of investments at the Yale New Haven Health System in February 2022, is no longer with the organization, according to a system spokesperson. No reason was given for his departure, and the spokesperson said the system does not comment on personnel matters.

For fiscal 2022, ending September 30, 2022, covering Lupkas’ first eight months on the job, the system’s annual report did not break out data on its investment portfolio. Calendar 2022 was a tough one for capital markets, with the S&P 500 losing 19.6% and the Bloomberg U.S. Aggregate bond index down 13%.

But a KPMG audit of the organization showed the health organization suffered a $572 million loss in fiscal 2022, $385 million from investments, which were valued at $3.6 billion as of September 30, 2022. Higher expenses accounted for much of the other red ink. The year before, YNH was in the black overall, $647 million, with $563 million in investment gains.

Before joining YNH, Lupkas for two years headed pension investments at Raytheon Technologies Corp., now a part of RTX Corp. Previously he served almost six years as a senior managing director for retiree medical benefits at the United Auto Workers. He could not be reached for comment.

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Shortly after Lupkas’s arrival, Geeta Kapadia, who had been director of investments at the Yale health-care nonprofit for 13 years, was appointed CIO of Fordham University in August 2022.

Two lower-ranking investment officials followed her: David Pearson, an investment analyst at YNH, was named associate director of investments at Fordham, and Mallika Nair, a YNH investment strategist, left to become senior director of investments at Fordham (she was part of CIO’s 2022 class of NextGens).

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Tags: Assets, Bloomberg US Aggregate Bond Index, Geeta Kapadia, loss, profit, Scott Lupkas, Yale New Haven Health System

New York City Comptroller Brad Lander has called on Occidental Petroleum Corp.-owned chemicals company Occidental Chemical Corporation, commonly known as OxyChem, to commit to stop importing asbestos and to speed up its transition to a non-asbestos technology.

As comptroller, Lander is a trustee of the New York City Fire Pension Fund and the New York City Police Pension Fund, which collectively own $61 million worth of Occidental Petroleum securities, as of September 1. In a letter to Occidental Petroleum Board Chair Jack Moore, Lander noted that the chlor-alkali production method that uses asbestos has largely been replaced worldwide by a method that does not use asbestos, which is deemed toxic by the Centers for Disease Control and Prevention.

Lander wrote that New York City police officers and firefighters are already at a heightened risk for asbestos inhalation because its particles can become airborne and inhaled when the chemical becomes disturbed or damaged by fire or fire suppression activities. He also noted the large amount of research that has shown asbestos can directly cause cancer, including lung cancer and mesothelioma. Lander wrote that prolonged asbestos exposure while in the line of duty has led to members of the pension funds ending up on accidental disability pensions.

The letter cited a September report from the Asbestos Disease Awareness Organization that identified OxyChem as one of only three active raw asbestos users in the chlor-alkali industry, along with Olin Corp. and Westlake Corp. However, Westlake and Olin stopped importing asbestos in 2016 and 2021, respectively, and are using their stockpiled asbestos as they transition to non-asbestos technology, making OxyChem the only company in the U.S. that still imports the toxic mineral.

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“Given that OxyChem’s major competitors in the U.S. have already made this commitment and no longer import raw asbestos, we believe that making this commitment now is prudent and will reduce legal and regulatory risks for OxyChem and ensure that the company’s industrial chlorine production remains profitable,” the letter said.

Representatives from OxyChem did not immediately respond to a request for comment.

OxyChem has opposed an asbestos phase-out, according to Lander, who said the company claims that the task of phasing out the use of the chemical cannot be accomplished in less than 25 years. He also said the company imported more than 300 metric tons of chrysotile asbestos from Brazil and China last year alone.

“While we recognize that the company cannot make this conversion overnight,” the letter stated, “we believe that the company can commit to undertake this transition over an expedited time period that would allow OxyChem to transform your manufacturing process while using up the company’s current supply of asbestos and cease additional asbestos imports.”

The city’s firefighter and police pension funds have 117,000 members combined, with total assets under management of approximately $68.6 billion, as of the end of August.