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The largest pension fund in the United States plans to end its hedge fund program in an effort to simplify its investment portfolio and reduce costs.
The California Public Employees’ Retirement System (CalPERS) will exit 24 hedge funds and six hedge fund of funds valued at approximately US$4 billion.
“Hedge funds are certainly a viable strategy for some,” says interim chief investment officer Ted Eliopoulos, but he believes they are too expensive and complex.
CalPERS will spend approximately the next year strategically exiting current investments that best serves the interests of the fund’s portfolio.
The pension fund has about US$300 billion in assets.
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