Basically wants you to work for tips.
Last year, the California Public Employees Retirement System fired all of its external hedge fund managers because it is very, very big, and hedge funds are very, very small, or something like that. Really, anything but those hedge-fund fees, which had absolutely nothing to do with anything.
Well, now CalPERS is coming for everyone else, or at least half of everyone else who is left, and this time, it’s definitely about the fees. So, for the next five years, the nation’s largest public pension fund is going to find out just how low it can make everyone go, before firing those who cannot or will not go low enough. Because they can.
The California Public Employees’ Retirement System, or Calpers, will tell its investment board on June 15 of its plans to reduce the number of direct relationships it has with private-equity, real-estate and other external funds to about 100 from 212, said Chief Investment Officer Ted Eliopoulos….The reduction in outside managers won’t fundamentally change Calpers’s investment strategy, or the percentage of assets managed in-house versus externally. The remaining 100 or so outside managers will simply get a bigger pool of funds varying from $350 million to more than $1 billion, Mr. Eliopoulos added. The goal, Mr. Eliopoulos said, is “to gain the best deal on costs and fees that we can.”