Hedge Funds Institutional Investors

CalPERS plans manager shake-up

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The $173 billion California Public Employees' Retirement System (CalPERS) plans to restructure relationships with its hedge fund managers to achieve better alignment of interests, more control of its assets and enhanced transparency.

"We believe that investors and managers a like stand to benefit over the long term when interests are better aligned, asset controls are properly instituted, and transparency of risks and exposures is improved," said Joseph Dear, CalPERS chief investment officer.

Instead of focusing on commingled accounts, CalPERS intends to move towards customised vehicles, managed accounts and other methods to improve control