Don’t Even Think Of Uttering The Numbers ‘Two’ Or ‘20’ In Sacramento

CalPERS sister fund would like hedge funds to know that they suck.

When the California Public Employees’ Retirement System sent its hedge funds packing a year-and-a-half ago, it went in pretty hard for the “it’s-not-you-it’s me” act. Albeit in a humblebraggy “we’ve just gotten too big for the hedge-fund community” kind of way.

Its sister Golden State pension fund, the California State Teachers’ Retirement System, is going in a significantly different direction.

"Two and 20 is dead. People have to understand that. That model has been broken," he said….

"We have a size advantage," Ailman said. "We already are negotiating. Our staff has put on their boxing gloves and gone in there and just laid it out, what we're looking for."

And if you want a piece of that sweet, sweet $186.8 billion, you’re just going to have to degrade yourself in whatever humiliating manner that Christopher Ailman’s team of dominatrices asks of you.

CalSTRS CIO: The 2 and 20 hedge-fund model is dead [CNBC]