Concerns that investments are too complicated and expensive, the nation’s largest pension fund, the California Public Employees’ Retirement System, will eliminate all of its hedge fund investments over the next year.
Overseeing $300 billion, the pension fund, says they will be liquidating its positions in 24 hedge funds and six hedge fund-of-funds — investments that total $4 billion and more than 1 percent of its total investments under management.
It is likely to resonate across the investment community in the United States, where large investment funds look to CALPERS as a leader because of its size and the superiority of its investments.