The California Public Employees’ Retirement System, the nation’s largest pension fund, will eliminate all of its hedge fund investments over the next year on concerns that the investments are too complicated and expensive, the New York Times reported today. The pension fund, which oversees $300 billion, said yesterday that it would liquidate its positions in 24 hedge funds and six hedge fund-of-funds — investments that total $4 billion and more than 1 percent of its total investments under management. The decision, after months of deliberation by the pension fund’s investment committee, comes as public pensions across the U.S. are beginning to assess their exposure to hedge funds.
