Tuesday, April 28, 2009

CalPERS Monthly Update


"Green shoots" all around as CalPERS had a 4.2% gain ($7 billion) on assets this month. The S&P did over twice as well during that same period, but I'm sure the difference can be explained by CalPERS' more conservative risk modeling approach.

7 comments :

patient renter said...

Gotta love that more conservative approach. It kills you just as bad on the way down, but precludes performance on the way up.

I saw that SacBee article on the CalPERS bonuses last week. I love how they trotted out the ole' line about how bonuses are necessary to maintain top "talent". I imagine it does take some kind of talent to lose that much money.

Max said...

It kills you just as bad on the way down, but precludes performance on the way up.That's "outside the bubble" thinking! Perverse incentives abound; there's no reward for making slow, steady returns. Wait until the NY kickback scandal breaks at CalPERS. Managers and State Employees don't care about poor performance (taxpayer's got their back) as long as those losses are "honest." But there'll be some long prison terms for any who took bribes.

patient renter said...

Max - I'm not sure if you've seen this:

http://pensiontsunami.com/blog/?p=92

Max said...

Max - I'm not sure if you've seen this:Yeah, there are a lot of knives out for CalPERS. Yves has been running Leo Kolivakis posts for the past few weeks.

patient renter said...

Looks like they pulled that blog post? Here's a direct link for anyone interested:

http://www.californiapensionreform.com/calpers/

BRUCE MALKENHORST - $41,639.57/mo, $499,674.84/yr employer:VERNON.

So what is Vernon and are they hiring?

patient renter said...

Holy freakin crap - a followup to my previous post:

http://en.wikipedia.org/wiki/Vernon,_California

"Vernon is a city in Los Angeles County, California, United States. The population was 91 at the 2000 census."

How on earth did the dude pull that off?

patient renter said...

One more post on this: Nice article from Forbes that hits the nail:

http://www.forbes.com/forbes/2007/0226/104.html