Calpers Is Done With Hedge Funds; Paid $135 Million in Fees Last Year for 7.1% Return – Bloomberg 09-16-14

Salient to Investors:

  • Ted Eliopoulos at Calpers said their small hedge fund allocation did not effectively diversify or hedge any meaningful portion of their total portfolio and their decision to divest the entire allocation was unrelated to its performance.
  • Keith Brainard at National Assn of State Retirement Administrators said Calpers is often a trend setter among pension funds on investment strategies, though many public pension funds consider hedge funds to be a vital part of their diversified portfolios.
  • Calpers’ annualized rate of return on its hedge fund investments over the last 10 years is 4.8% versus its fund return goal of 7.5%
  • McKinsey said that assets in alternative investments such as hedge funds, real estate and private equity may double by 2020.

Read the full article at  http://www.bloomberg.com/news/2014-09-16/calpers-pulls-all-4-billion-in-hedge-funds-citing-costs.html

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Calpers Earns 12.5% as Stocks Buoy Pension Fund’s Returns – Bloomberg 07-15-13

Salient to Investors:

Calpers assets passed a pre-recession high of $260.6 billion in May, 5 years after the global financial crisis wiped out more than a third of its value, by keeping exposure to growth assets.

Calpers lost a record 23 percent in 2009, gained almost 21 percent in 2011, and earned 1 percent in 2012.

Read the full article at  http://www.bloomberg.com/news/2013-07-15/calpers-earns-12-5-for-year-as-stocks-buoy-pension-s-returns.html

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