Tag Archives | CalPERS Effect

CalPERS Investments

CalPERS Investments: Smart Beta Not Secret Private Equity

CalPERS investments underperform. CalPERS underperformed for a decade, investment chief says in pitch for more risk. The country’s largest public pension system earned an average of 7.7% per year on its investments over the last 10 years. That’s 1.2% less than a hypothetical peer should have expected to earn in the same time period. To remedy the […]

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Agency Capitalism: Corrective Measures (Part 2)

This is Part 2 of a post which started out reviewing the important thesis outlined in The Agency Costs of Agency Capitalism: Activist Investors and the Revaluation of Governance Rights by Ronald J. Gilson and Jeffrey N. Gordon (January 1, 2013). See Agency Capitalism: Corrective Measures Part 1 and Part 3. Current law encourages mindless indexing of portfolios and voting like lemmings […]

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CalPERS Focus List Methodology to be Revised

A recent examination of the “CalPERS Effect” by Wilshire found that Non-Focus List companies outperformed Focus List companies. Only the “worst” offenders are “named and shamed” on the Focus List. More receptive companies may already have engaged reform and are likely to move more quickly to better governance standards, improving the performance of those stocks […]

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