CalPERS Commits $300M To Japanese, Korean Activist Funds

Jul 2 2008 | 12:40pm ET

The California Public Employees Retirement System is betting on a pair of Asian activist funds to give its corporate governance portfolio a boost.

The $235 billion fund committed $200 million to Taiyo Cypress Fund, which takes an activist approach to Japanese public and private companies.

TCF is a joint venture between Taiyo Pacific Partners, a California-based firm, and WL Ross & Co., a New York-based private equity shop. The fund has a target size of between $2 billion to $4 billion.

The portfolio will hold eight to 10 publicly-traded companies representing no less than 65% of the portfolio, with the remainder of the portfolio to be comprised of private companies.

CalPERS is also committing $100 million to Lazard Korea Corporate Governance Fund, an open ended Irish-listed offering launched in 2006 with a targeted capacity of roughly $600 million.

The fund’s strategy is to invest in small and mid-sized Korean companies that it deems undervalued with “significant room to improve governance principles and practices.”

“Notably, the fund will pursue its objective through a collaborative discussion between company management, the fund and other shareholders, rather than a confrontational approach,” the firm said in an internal memo.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.