CalPERS

Global Equity Glossary

This Glossary identifies, defines, and clarifies the meaning of investment terms used by CalPERS in our investment policies. The purpose of the Glossary is to establish a uniform vocabulary of terms for users of these policies.

Choose from the letters below to find a specific Global Equity Investment Policy term or phrase. You'll also find information about the related policies and asset classes for each term.

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S


Sampling - A method of indexation whereby a representative sample of the index constituents, rather than every share in the index, are purchased.

Related Policy

  • No related policies

Short Sale - The sale of a security that is not owned by the investor but rather is borrowed from a broker. The investor eventually repays the broker in kind by purchasing the security in a subsequent transaction.

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  • No related policies

Short Selling - Selling securities that are not owned and buying them back later to take advantage of an anticipated decline in price.

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  • No related policies

Specific Risk - The component of total risk that is unique or idiosyncratic to an individual security.

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Speculation - Assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss.

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Spin Offs - Companies which are created by separation from another company and begin to trade publicly on their own.

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Standard Deviation - A statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution. It is widely used as a measure of risk for portfolio investments. It is the square root of variance. In a symmetrical distribution, such as the normal distribution, approximately two-thirds of all outcomes fall within +/-1 standard deviation, and approximately 95 percent of all outcomes fall within +/-2 standard deviations.

Related Policy

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Strategic or Concentrated Block Funds - These are funds that focus their investments in relatively few companies. Their intent is usually to gain board of director?s representation or to sell their investment stake back to the company at a premium in undervalued but fundamentally sound going concerns, and then proactively work with management, boards of directors and shareholders on major issues of strategy, capital structure, management and performance.

Related Policy


Strategy - Broadly refers to or describes an investment product; or, when used in the context of trading, describes a plan of action for constructing a portfolio or an exit strategy. An example of a strategy would be a domestic large cap growth ?strategy? or an active or passive ?strategy?.

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Style Benchmark - A custom benchmark composed of individual securities or a combination of published benchmarks with returns closely tracking an individual manager's returns. Style benchmarks help determine what portion of a manager's performance can be explained by its style and what portion can be attributed to stock selection.

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Style Bias - The difference between an aggregate or individual manager benchmark and the target.

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Swap - Private agreement between two companies to exchange cash flows in the future according to a prearranged formula.

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Synthetic Strategy - Combination of obtaining market exposure via futures contracts or swaps and enhancing return through the management of the underlying cash portfolio. The market exposure is achieved through a long S&P 500 futures position and the remaining capital is invested in money market instruments with a maturity of 90 days or longer that have greater duration or credit risk.

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Systematic Risk - That portion of total risk that stems from exposure to the market in general and cannot be eliminated by diversification.

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  • No related policies