Calpers Reduces Holdings in Tech Giants, Increases Allocation to Private Equity

The California Public Employees' Retirement System (Calpers) is adjusting its asset allocation by reducing direct holdings in Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla, with plans to cut its total shareholdings by 26% in the first half of 2026. At the same time, Calpers is increasing its exposure to private equity to mitigate the concentration risk associated with public stock investments. Anton Orlich, Calpers' Deputy Chief Investment Officer, stated that valuations in the public equity market are high, with a significant concentration in a few leading companies, which may pressure relative returns. In contrast, the pricing of private companies is more attractive and can provide a buffer during downturns in the public market. This reallocation comes ahead of a concentrated sell-off in tech stocks, as concerns grow over whether AI spending can translate into actual returns. As of June 30, Calpers managed assets totaling $637.1 billion, with a preliminary net investment return of 14.8% over the past 12 months.

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