CalPERS announced plans to phase out its $4 billion hedge fund portfolio last month. But other pension funds are now interested in the hedge funds CalPERS is getting rid of, according to a report from FinAlternatives:
The California Public Employees’ Retirement System already has potential buyers kicking the tires of its $4 billion hedge fund portfolio.
The pension, which last month announced it would take at least a year to “strategically exit” its hedge fund investments, has received indications of interest for some or all of its holdings from other state pension funds, reports Fortune, citing sources familiar with the situation.
The State of Wisconsin Investment Board, which has yet to meet its hedge fund investment targets, was identified by a source as one of those potential buyers.
A CalPERS spokesman told Fortune the pension will “evaluate all possibilities” with the portfolio, but would not confirm interest from other pension funds.
“Ultimately, we will exit those investments in a manner that best serves the interests of the fund,” said the spokesman.
Pension360 has covered the fact that, while CalPERS has exited hedge funds, not many pensions have followed in their footsteps.
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