Victor Nava on California's Pension System Dumping Hedge Funds

Last week,
the California Public Employees’ Retirement System (CalPERS), the
largest public pension system in the U.S., announced that it’s
going to divest its assets from hedge funds. The move to withdraw
about $4 billion of CalPERS $299 billion in total
funds is the result of years of poor performance from hedge
funds that come at a steep cost and with substantial risk. What led
so many U.S. pension funds to invest in hedge funds in the first
place? The answer, Victor Nava writes, is a long history of
unrealistic expectations and mismanagement on behalf of the state
government.

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