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(MSN)   Calpers CIO misses return targets and quits after less than two years, saying he wanted to focus on his health and family. Also, some other jackass already nabbed the "creative differences" excuse   (msn.com) divider line
    More: Followup, Chief executive officer, Blackstone Group, Ben Meng, Pension, Bloomberg L.P., Michael Bloomberg, Pension fund, Executive officer  
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271 clicks; posted to Business » on 06 Aug 2020 at 4:28 PM (24 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2020-08-06 4:53:21 PM  
What the fark does the CIO have to do with hitting return targets?  He should just be concentrating on things like information security and having an efficient and easy-to-use customer portal.

(reads article).

Oh.
Chief Investment Officer.
Never mind.
 
2020-08-06 5:12:39 PM  
For the record the Fidelity S&P 500 Index fund, which is one of the basic funds anyone looking for long term return should be invested heavily in, is up about 7.5% YOY from the end of the last quarter.  You have to try really hard to only get 4% returns with the way the market has been over the past year even with coronavirus, particularly when you're one of the largest institutional investors in the world and have a lot of weight to throw around
 
2020-08-06 6:22:16 PM  

bhcompy: For the record the Fidelity S&P 500 Index fund, which is one of the basic funds anyone looking for long term return should be invested heavily in, is up about 7.5% YOY from the end of the last quarter.  You have to try really hard to only get 4% returns with the way the market has been over the past year even with coronavirus, particularly when you're one of the largest institutional investors in the world and have a lot of weight to throw around


Maybe they acted socially responsible but financially irresponsible?
 
2020-08-06 6:22:20 PM  
Getting out before the shiatcastle falls down on him.
 
2020-08-06 6:29:47 PM  
So in other words, California tax payers paid this guy and his staff millions to underperform index funds. How awesome is that?
 
2020-08-06 7:25:12 PM  

BgJonson79: Maybe they acted socially responsible but financially irresponsible?


???
 
2020-08-06 9:21:00 PM  
I was told the stock market is for billionaires and elitists, not the common folk, and that Fark wants to see the market crash...
 
2020-08-06 9:30:23 PM  

bhcompy: For the record the Fidelity S&P 500 Index fund, which is one of the basic funds anyone looking for long term return should be invested heavily in, is up about 7.5% YOY from the end of the last quarter.  You have to try really hard to only get 4% returns with the way the market has been over the past year even with coronavirus, particularly when you're one of the largest institutional investors in the world and have a lot of weight to throw around


Difficulty: Pension investments are set up to minimize the amount of liquid assets available to just what they need for the next 12 months.

Because of the investment horizons, they invest heavily in real estate (which has taken a small hit) and better blue chip stocks.  4.7% isn't horrible in today's environment, but it could have been better.
 
2020-08-07 1:35:18 AM  

FrancoFile: What the fark does the CIO have to do with hitting return targets?  He should just be concentrating on things like information security and having an efficient and easy-to-use customer portal.

(reads article).

Oh.
Chief Investment Officer.
Never mind.


Your 'I's can deceive you.
 
2020-08-07 4:54:59 AM  

bhcompy: For the record the Fidelity S&P 500 Index fund, which is one of the basic funds anyone looking for long term return should be invested heavily in, is up about 7.5% YOY from the end of the last quarter.  You have to try really hard to only get 4% returns with the way the market has been over the past year even with coronavirus, particularly when you're one of the largest institutional investors in the world and have a lot of weight to throw around


Pension funds are generally not allowed to invest only in one index fund, or even only Stonks.  They are managed to minimize risk, since the state must pay the union members in full irrespective of fund performance.
/Illinois pension fund wants to know what is going on in this thread, just before passing out on Thunderbird while gambling on penny stocks driving around in a rusted out van.
 
2020-08-07 11:21:27 AM  

Northern: Pension funds are generally not allowed to invest only in one index fund, or even only Stonks. They are managed to minimize risk, since the state must pay the union members in full irrespective of fund performance.
/Illinois pension fund wants to know what is going on in this thread, just before passing out on Thunderbird while gambling on penny stocks driving around in a rusted out van.


It's more the point that general index funds are indicators of average market performance.

Historically, the pension program has been primarily invested in stocks and bonds(average 8% yearly return for the past 30 years).  Meng changed the strategy and made significant investments in vulture capital firms and private equity firms, he's borrowing significant amounts to make risky investments with(buying on margin it would seem), he removed hedges for downturns(which could've offset significant rona losses), etc.  These are not hallmarks of a "minimizing risk" position.  He took the brakes off the money train.  These are hallmarks of someone who takes r/wallstreetbets as sound investment advice.  It's careless to gamble so much with a pension fund, particularly when more traditional investments have produced the returns they need.  Hell, their returns on stocks were only .6% when the market was performing at 10x that rate over the year
 
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