, Columnist
California Earthquake for Hedge Funds
The decision by the California Public Employees Retirement System to shed its investment in hedge funds is a sign of things to come.
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This was the big news yesterday out of California:
Though this move may shock some people, it was one of the most-telegraphed actions that the nation’s biggest pension fund has made. The seeds for this were planted last year, when Calpers moved the authority over hedge funds from its equity desk to its fixed-income group. Bond investors look at the world very differently from equity investors.