•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Komfie Manalo, Opalesque Asia:

Performance has nothing to do with the decision of America’s largest pension fund, the California Public Employees' Retirement System or CalPERS, to abandon its entire $4bn hedge fund program, said its new chief investment officer Ted Eliopoulos.

Eliopoulos made the statement in an interview with CNBC’s Closing Bell and added that the decision was not intended to send a message about a particular industry.

He was quoted as saying, "It is not about the performance of the hedge fund program or about the industry in general. For us, it's ending the program because it doesn't serve CalPERS' purposes. For us, in making our hedge fund decision, we looked at the relatively small scale of the hedge fund program and its real inability to have a meaningful impact on our total portfolio.

He told CNBC that CalPERS made its decision after careful assessment of the program’s cost and the complexity of hedge funds. Eliopoulos added, "It (hedge fund) just was not practical or beneficial for us to scale up the portfolio to a size that would be meaningful to our portfolio."

On Sept. 15, CalPERS announced it would divest its hedge fund program. The pension said the program was too expensive and too complex to effectively move the needle for an already ......................

To view our full article Click here