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.