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Largest US public pension fund sharply cuts holdings in the “Magnificent Seven,” shifts toward private equity
BlockBeats News,October 23, according to the Financial Times, the California Public Employees’ Retirement System (Calpers), the largest public pension fund in the United States, is adjusting its asset allocation by reducing its direct holdings in the “Magnificent Seven” while increasing private-equity exposure, in order to reduce concentration risk in public-equity investments.
Based on regulatory filings, Calpers in 2026 reduced its total directly held shares of Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla during the first half of 26%. The fund instead diversified its investments across hundreds of companies, reducing concentrated investments in a small number of leading companies.
Calpers Deputy Chief Investment Officer Anton Orlich confirmed this allocation direction in an interview. He stated that public-equity market valuations are already at elevated levels, with high concentration among a small number of leading companies, potentially putting relative returns under pressure. By contrast, private-company pricing is more attractive and may help Calpers obtain some cushion when public markets decline.
This portfolio adjustment occurred before the recent concentrated sell-off in technology stocks. After several technology giants released earnings this week, market concerns have intensified over whether AI spending can translate into actual returns. Microsoft, Amazon, and Alphabet will release results successively next week, and the technology sector still faces further tests.
As of June 30, Calpers had assets under management of 637100000000 USD. Data released by the fund July showed that the preliminary net investment return for the past 12 months was 14.8%, with both public- and private-equity portfolios performing strongly.
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