Two of CalPERS' international equity managers, GE Asset Management and Robeco Group, were ripped by Wilshire Associates in a letter to Mark Anson, the $149 billion system's CIO, because of their performance. Rosalind M. Hewsenian, a Wilshire managing director, also expressed concerns about foreign-stock managers Mastholm and Schroder, raised concerns about four of CalPERS' domestic equity managers - Boston Co., J.P. Morgan Fleming, Oppenheimer Capital and Osprey Partners - and is closely watching Geewax Terker. The four international equity managers collectively handled $2.1 billion as of June, while the five domestic stock managers ran a combined $3.2 billion.
GE, which manages $521 million for the California Public Employees' Retirement System, Sacramento, "has had exceedingly weak stock selection that has dominated its performance since the firm's inception," Ms. Hewsenian wrote. GE, which is already on watch, will be reviewed in two months.
Robeco, which runs $490 million, "has been plagued by weak stock selection," Ms. Hewsenian wrote. The firm will be reviewed in greater detail in December.
Tim Benedict, a spokesman for GE, said the strategy's long-term results are strong, and the firm continues to work actively with CalPERS. Officials at Robeco did not return a call seeking comment by press time.