It has been just over a year since the California Public Employees’ Retirement System said it would wind down its $4 billion portfolio of hedge fund holdings. High costs and complexity made the vehicles “no longer warranted,” said at the time.
Given Calpers’s leadership in the public pension arena, some thought other pension managers and institutional investors would follow suit. But that does not appear to be happening, even during this, a trying year for hedge fund performance. The question is, why not?
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