CalPERS is one of the largest institutional investors in both the U.S. and international stock markets. A large portion of our money invested in stocks is "passively managed." That means that we don't actively try to time the market. We are long-term investors - we buy and hold. Our belief is that the market is relatively efficient and that it is difficult to add value with active management. We do maintain some active equity management in areas where there appears to be the potential for managers to add value. Active strategies are managed both externally and internally.
The CalPERS Board has also established a hedge fund program and has created an innovative External Manager Development Program that focuses on the development of new and emerging money managers.
Refer to our Asset Allocation information to find out the latest amount of money CalPERS has currently invested in equities.