CalPERS names new CIO

Eliopoulos succeeds Joseph Dear who passed away in February after a long battle with cancer.

Eliopoulos joined CalPERS in 2007 after a four-year stint with the California State Treasurer's Office where he was deputy treasurer and then chief deputy treasurer. By moving from real assets to CIO, he is swapping a $26 billion portfolio covering real estate, infrastructure and forestland for one worth for stewardship of America's largest public pension fund. He will be responsible for an investment portfolio of approximately $300 billion and an office with nearly 400 professional staff.

CalPERS is one of the world's leading private equity investors, with $31.5 billion deployed in the asset class, or 10.7% of the overall portfolio. The target allocation was 14% but the pension system said earlier this year that this would drop to 12% as part of a broader effort to lower investment risk.

This week CalPERS announced plans to eliminate its hedge fund program, otherwise known as the absolute return strategies program, in order to reduce the complexity and costs of its investments. It will exit 24 hedge funds and six hedge fund-of-funds valued at approximately $4 billion.

CalPERS' hedge fund program has delivered a one-year return of 7.4%, a five-year return of 1.4% and a 10-year return of 5%. This compares to 18.2%, 7.1% and 12.3% for private equity.

Commenting on Eliopoulos' appointment, Henry Jones, CalPERS board member and chair of the investment committee, said in a statement: "The CalPERS Investment Office has gone through a period of tremendous change and transformation in recent years. In addition to his remarkable talent, Ted will provide steady leadership and bring further stability to the office so he and his staff can focus on achieving long-term, risk-adjusted returns for our members."

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