CalPERS plans to boost the target range for its $9 billion core real estate portfolio to 50% to 80% of the overall real estate portfolio this year, from 50% to 70%, giving the pension fund greater opportunity to take advantage of a downturn in the market. As a result, the target range for the systems $2.6 billion specialized portfolio would shift to 20% to 50% of the overall real estate portfolio, from 30% to 50%. The total size of the real estate portfolio would not change, though staff at the $152 billion California Public Employees Retirement System, Sacramento, also plans to start reviewing the funds 5-year-old real estate strategic plan.
Also, the CalPERS investment committee yesterday approved Blackstone Alternative Asset Management as the strategic adviser for its $1 billion global equity hedge fund program, as expected. It also approved hiring 11 managers to run $475 million in its new California Initiative private equity program. A $25 million commitment to Blue Capital Partners Fund II was delayed for further review because the firm is in contract discussions with McKinsey, which assisted CalPERS in selecting firms for the program.