SACRAMENTO, Calif. — CalPERS invested $75 million in OZ Domestic Partners II, a multistrategy hedge fund managed by Och-Ziff Capital Management Group. The fund uses merger arbitrage, long-short equity special situations, convertible/capital structure arbitrage and distressed credit. The $204.2 billion California Public Employees' Retirement System also invested $100 million in Vision Blue Diamond, an Asian hedge fund of funds managed by Vision Investment Management.
In private equities, CalPERS committed $25 million to Carlyle Mexico Partners, which will make controlling investments in Mexico companies. It also committed $35 million to Lightspeed Venture Partners VII, an early stage technology fund, and $50 million to Pharos Capital Partners II, a mid- to late-stage fund investing in underserved markets across the country. The fund also committed $30 million to Carlyle Asia Growth Partners III, a venture and growth equity fund that will target emerging companies in China, India, Japan and South Korea. It will commit up to $30 million to DFJ Element, a limited partnership with Draper Fisher Jurvetson that will invest in clean technology businesses. CalPERS also committed $15 million to Rockport Capital Partners II, a $261 million fund investing in energy and environmental technology firms.
CalPERS hired O'Connor Global Quantitative Equity, a unit of UBS AG, to manage an initial contribution of $50 million to its global market-neutral strategy. CalPERS also made an initial contribution of $50 million to The 32 Capital Fund, a global market-neutral strategy managed by Barclays Global Investors.
Also, CalPERS retained State Street Bank & Trust as master custodian. State Street slashed its fee to $4 million a year — from $10.5 million — to retain contract. The other finalists were Bank of New York and Northern Trust. R.V. Kuhns was the consultant.