CalPERS May Trim List Of Alternative Managers

Jul 20 2011 | 8:34am ET

CalPERS may reduce the number of alternative investment funds to which it allocates.

The $241.3 billion California Public Employees’ Retirement System says research shows 80% of its returns come from 55 of the 500 funds in which it invests under its alternative investment management program.

Real Desrochers, a senior investment officer for alt investment program, told Pensions & Investments the numbers show the pension needs a “more concentrated portfolio” in this space but said no decisions to terminate managers have been made. Desrochers said a full review of the program is underway and would be finished in September.

Although there may be too many cooks, the CalPERS AIM program did well during the year ending March 31, returning 25.34% to beat the benchmark of 20.58%. Overall, the entire fund earned 20.7% for the year ended June 30, thanks mostly to gains in stocks (which returned 30.2% for the year) and private equity (25.3%).

“Obviously the results are pleasing,” said Chief Investment Officer Joe Dear. “We are in the 20% club. It was a good year. We are back.”


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.