Calpers’ Hedge-Fund Exit Stemmed From Challenge to Expand Assets
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The California Public Employees’ Retirement System’s decision to divest its entire $4 billion from hedge funds came after officials concluded the program couldn’t be expanded enough to justify the costs.
“Our hedge fund allocation was quite small,” interim Chief Investment Officer Ted Eliopoulos said today on Bloomberg Television’s “Market Makers” with Erik Schatzker and Stephanie Ruhle. “It did not offer us the ability or the promise to effectively diversify or hedge any meaningful portion of our total portfolio.”