CalSTRS appears ready to adopt a resolution at its Wednesday investment committee meeting to sell its $274 million in tobacco holdings.
The $111 billion California State Teachers Retirement System, Sacramento, and consultant Pension Consulting Alliance found that legal and financial threats to the tobacco industry meet the funds newly adopted benchmark modification policy.
The policy allows changes in benchmarks when an industry faces at least three of four criteria: major litigation exposure; a significant threat of industrywide bankruptcy filings; regulatory and/or legislative actions that could have a substantial impact on industry earnings; and policy actions by institutional investors that could harm share prices.
Collins Associates is shutting down, said Budge Collins, principal and director-client services and marketing.
Were going out of business, he said. Last Monday, we got resignations from all our clients but one. And that client will be leaving soon, he said. The hedge fund firm, which specializes in funds of funds, managed about $1.5 billion last year. Clients cited turmoil in the firm as their reason for leaving, Mr. Collins said.
He said his plans and those of the two other top executives CEO Michael Earley and CIO Richard H. Moskowitz, both of whom joined the firm only about three months ago are indefinite.
I will definitely start another company, Mr. Collins said. He couldnt say if it would be in the money management field. This isnt the end for me.