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In another blow to active fund management, CalPERS is mulling a move to an all-passive...

In another blow to active fund management, CalPERS is mulling a move to an all-passive portfolio. The $255B AUM fund already has about half of its money in such, and is now questioning whether the effort (and fees) associated with finding outperforming managers is worth it.
Comments (8)
  • Larry Smith
    , contributor
    Comments (2481) | Send Message
     
    It's not! CNBC reported last week Hedge Funds are on average up 4.9% for the year. A year in which the Dow and S&P are up about 10%. Hedge funds also underperformed last year.
    20 Mar 2013, 10:45 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    In their defence, hedge funds shouldn't simply imitate indices, but actually hedge against risk. In a bull market underpinned by weak fundamentals, cautious hedge funds are bound to under-perform.
    20 Mar 2013, 10:52 AM Reply Like
  • pollyserial
    , contributor
    Comments (1055) | Send Message
     
    This is as sure a sign as any that tactical is getting ready to outperform for a while.
    20 Mar 2013, 12:40 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (17874) | Send Message
     
    Calpers certainly has a knack for it. Weren't they plunging into RE right around the top of that particular bubble?
    20 Mar 2013, 02:09 PM Reply Like
  • User 6707651
    , contributor
    Comments (983) | Send Message
     
    Theoretical question, if everyone moves to passive management, how does the market work as a pricing mechanism?
    20 Mar 2013, 01:43 PM Reply Like
  • davidbdc
    , contributor
    Comments (3141) | Send Message
     
    So CalPERS active management is thinking of dropping the active managers they invest with.

     

    Well, thats a step in the right direction as at least one layer of active managers is gone....... Now about the bureaucrats running CalPERS???
    20 Mar 2013, 02:08 PM Reply Like
  • Hillbilly Stock Star
    , contributor
    Comments (728) | Send Message
     
    Vanguard ETF's ,......Like taking candy from a baby!
    20 Mar 2013, 03:13 PM Reply Like
  • Dr. Kris
    , contributor
    Comments (319) | Send Message
     
    Wow, this is great news! Calpers should use my Portfolio Preserver. Perfect for them.

     

    And yes, this is a shameless plug. But they really should use it: http://bit.ly/WJvLxQ

     

    Dr. K
    20 Mar 2013, 05:33 PM Reply Like
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