The California Public Employees’ Retirement System (CalPERS) clearly had a rough go of it in the last 6 months. They lost a great deal of money. Now they seem intent on solving their “problems”. As this document (PDF) shows they are putting in place new rules for how they deal with and select hedge fund investments.
What are some of the big new rules? Well, CalPERS is worried about how much a hedge fund makes. Normal people might be worried first and foremost as to whether a fund returns ‘after fee’ positive performance or perhaps be concerned with the trading strategy employed, but CalPERS is worried about appearances. Clearly, CalPERS is only worried about politics. Does anyone think the great money earners in this world ask the questions CalPERS asks first? Of course not.
I would love to a list of the hedge funds and strategies CalPERS lost money in over the last 6 months. That would tell us a ton about the brain power in charge of all of those pension account monies.
PS. The “confidential” part is great. This is the freaking government!