FYI: CalPERS Insight’s Bob Burton sits down to talk with CalPERS’ CIO Ted Eliopoulos about the pension fund’s decision to terminate its hedge fund program. “Almost simultaneous with your appointment, CalPERS dropped hedge funds from the portfolio,” Burton points out, before asking Eliopoulos: “What drove the decision?” Readers who’ve been following the CalPERS story will not be surprised by Eliopoulos’s answer: “The main driver of the decision was CalPERS’ scale,” referring to the relatively insignificant size of the hedge fund program within CalPERS’ huge investment portfolio. Later in the video, Burton asks Eliopoulos how CalPERS is taking climate change into consideration, to which Eliopoulos responds, “We view it as a risk factor within our overall portfolio.”
Link:
http://dailyalts.com/scalability-main-driver-behind-calpers-hedge-fund-decision/
