CalPERS hints at starting own hedge funds

Date: Tuesday, May 26, 2009
Author: Iimagazine.com

The $180bn California Public Employees’ Retirement System is hinting at a bold stroke: building its own hedge funds and running them in-house. Sacramento-based CalPERS, the biggest public pension fund in the U.S., sees the move as a potential way to attract high-end talent. But given the compensation gap between money management jobs in the public sector and the private sector (where hedge fund management can be among the best-paying occupations on the planet), CalPERS administrators will need to be creative to compete.