Calstrs Drops Remington Outdoor, Ending Firearms Holdings

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The California State Teachers’ Retirement System, the second-largest U.S. pension, said it has sold its stake in the company that made the rifle used to kill 20 children at a Connecticut school three years ago.

The $193.1 billion fund has sold its holdings in Remington Outdoor, according to a statement from Chief Executive Jack Ehnes. The pension held the stake through New York-based private equity firm Cerberus Capital Management LP.

The action concludes a two-year effort to sell all its holdings in companies that manufacture firearms that are illegal in California. Calstrs eliminated $3 million in public equity stocks from Smith & Wesson Holding Corp. and Sturm Ruger & Co. Inc. by the end of 2013, according to a press release. They were the largest publicly traded U.S. gun manufacturers.

“Calstrs has taken a very clear, vocal stand on the issue of firearm divestment among the nation’s pension funds and remains very committed to our decision,” Ehnes said in a statement.

California bans some types of firearms and ammunition magazines that hold more than 10 rounds.

Jessica Kallam, a spokeswoman for Remington Arms Company LLC, didn’t immediately respond to a phone call and an e-mail message.

Calstrs had unsuccessfully attempted to induce Cerberus to sell its Remington stake, according to the statement from the pension fund, until the private-equity firm allowed Calstrs to opt out of that holding.

Remington Outdoor had been owned by Freedom Group Inc., the maker of the Bushmaster AR-15 rifle that police said was the primary weapon in the killing of 20 children and six staff at Sandy Hook Elementary School in Connecticut in 2012.

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