CalPERS Eyes Hedge Fund Boost In Review

Nov 8 2011 | 10:39am ET

The nation's largest public pension fund may vote to boost its already substantial hedge fund portfolio next year.

The $228.6 billion California Public Employees' Retirement System is launching its first review of its hedge fund program since Joseph Dear became chief investment officer two-and-a-half years ago. While the review has yet to begin, Dear said today that the outcome is all but assured.

"The outcome of [the review] could be a decision to increase the size of the program," he told Bloomberg News. "It could be to leave it where it is. I doubt it will result in a recommendation to shrink the size."

CalPERS currently invests $5.2 billion, or about 2% of its assets, in hedge funds, which were moved in July from the pension's public equity portfolio to its absolute return program.

Dear said that the hedge fund portfolio "demonstrated its value" in the third quarter, when CalPERS' global equity portfolio lost 18%, but its absolute return strategy fell only 2.5%.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note