CalPERS cuts Mag 7 tech holdings, shifts focus to private equity: FT
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CalPERS is reducing its exposure to seven major US technology companies and diversifying into hundreds of companies, Deputy Chief Investment Officer Anton Orlich told the Financial Times in an interview.
The $640B pension company is moving away from big US tech companies and increasing exposure to private equity. Calpers' pivot comes amid a several-year bull market in US stocks led by technology giants.
However, Orlich sees more attractive valuations in private companies than publicly traded stocks, presenting an opportunity to cushion the fund against a potential public-market downturn.
CalPERS, the largest public pension fund in the US, cut its direct holdings across the Magnificent Seven stocks—Apple (AAP), Microsoft (MSFT), Alphabet (GOOG) (GOOGL), Amazon (AMZN), Nvidia (NVDA), Meta (META), and Tesla (TSLA) by 26% in the first half of 2026.
Investments in venture capital and quickly growing private companies have made up a “disproportionate” share of CalPERS’ new investments since 2022.
CalPERS could exit many of its venture capital and growth equity holdings through sales to strategic buyers, the report said.
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