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

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

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

Analyzing The Digital Footprint: What Operational Data Can Tell You About Future Risk

Mar 30 2017 | 3:38pm ET

Advances in technology and increasing operational complexity in search of higher...

 

From the current issue of