{"id":126,"date":"2025-07-16T03:22:57","date_gmt":"2025-07-16T03:22:57","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/126\/"},"modified":"2025-07-16T03:22:57","modified_gmt":"2025-07-16T03:22:57","slug":"how-california-pensioners-pulled-one-over-on-yales-investors","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/126\/","title":{"rendered":"How California pensioners pulled one over on Yale\u2019s investors"},"content":{"rendered":"

The stake sale, which included slices of dozens of blue-chip funds, was planned before President Donald Trump began his campaign against elite universities. But it\u2019s seen as an omen for schools facing federal funding cuts that their huge endowments will be tapped to backfill. Massive funds<\/a> have been raised to capitalize on the brisk trade in fund stakes.<\/p>\n

CalPERS\u2019s haul included a big stake in crypto company Circle, held through a General Catalyst venture fund that Yale was selling, according to people familiar with the matter. Marketing documents circulated to buyers gave the fund\u2019s value as of December 31, which didn\u2019t account for Circle\u2019s coming IPO, a major oversight. The June 5 listing and Circle\u2019s subsequent 480% stock-price increase generated quick gains of more than $100 million for CalPERS, the people said.<\/p>\n

That windfall contributed modestly but auspiciously to a 14.3% gain in CalPERS\u2019 private-equity strategy for the year that ended June 30, according to results released Monday. As the largest US pension fund, CalPERS is closely watched by rivals and courted by money managers. And it\u2019s in the middle of a major private-investing reboot after chronic underperformance<\/a> and squeamishness over some job-killing buyouts<\/a> \u2014 \u201cprivate equity isn\u2019t my favorite asset class,\u201d one CalPERS board member said in 2020 \u2014 led to a pullback and the departures of two successive chief investment officers. One of them admitted that the fund\u2019s \u201clost decade\u201d<\/a> had cost retirees as much as $18 billion.<\/p>\n

In 2021, CalPERS hired an outsider, Anton Orlich, who has invested quickly, shifted away from mega-buyout funds toward venture capital and growth equity, and muscled out other investors for special rights to invest directly alongside managers.<\/p>\n

\"A<\/p>\n

Yale didn\u2019t respond to a request for comment. A CalPERS spokesman declined to comment. <\/p>\n","protected":false},"excerpt":{"rendered":"The stake sale, which included slices of dozens of blue-chip funds, was planned before President Donald Trump began…\n","protected":false},"author":2,"featured_media":127,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":["post-126","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=126"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/126\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/127"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}