Key Takeaways
- • CalPERS, the $653.8 billion California public pension fund, is exploring hedge fund exposure through separately managed accounts, according to emails reviewed by Pensions & Investments.
- • The exploration comes more than a decade after CalPERS' high-profile exit from hedge funds in 2014.
- • The emails indicate the pension is revisiting an asset class it abandoned, a development relevant to hedge fund managers pursuing public pension mandates.
Summary
CalPERS, the California Public Employees' Retirement System with $653.8 billion in assets, is exploring the possibility of re-entering hedge funds, according to emails reported by Pensions & Investments reporter Lydia Tomkiw on October 22, 2026. The structure under consideration is separately managed accounts rather than commingled fund commitments, per the emails cited in the report.
The pension's move would mark a reversal of its 2014 decision to exit the asset class, a withdrawal that drew considerable public attention at the time. The original article is brief and does not detail the specific strategies, target allocation size, or timing under review, and those specifics should be treated as unconfirmed until CalPERS publishes formal board action or an investment policy update.
For allocators and hedge fund managers, the report signals that one of the largest U.S. public pensions is reassessing its stance on hedge fund exposure. Any formal program would likely be subject to CalPERS board approval and its investment staff's due diligence process.
The pension's move would mark a reversal of its 2014 decision to exit the asset class, a withdrawal that drew considerable public attention at the time. The original article is brief and does not detail the specific strategies, target allocation size, or timing under review, and those specifics should be treated as unconfirmed until CalPERS publishes formal board action or an investment policy update.
For allocators and hedge fund managers, the report signals that one of the largest U.S. public pensions is reassessing its stance on hedge fund exposure. Any formal program would likely be subject to CalPERS board approval and its investment staff's due diligence process.
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