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CalPERS Prioritizes Profits

CalPers - the largest pension fund in the U.S. is recouping losses from the financial fallout with a strategy that's boosted assets by $40 billion since its January low.

How?

On the Closing Bell, CIO Joe Dear told Maria Bartiromo that equity and fixed income remain key overweights in the pension's portfolio.

Dear said he "still believes alternative investments will work in the long term."

CalPERS assets peaked at $270 billion in 2007, only to fall to around $160 billion in January this year. CalPERS is currently sitting on $22 billion of private equity investments. When asked about distressed assets, Dear told Bartiromo "distressed assets provide a lot of opportunity."

Outside of the investment arena, Dear remains concerned on regulation. Dear told Bartiromo "not enough reform has passed." Dear said investors are forgetting about the financial fallout over the past year with big loopholes remaining in such areas as OTC derivatives. Dear told Bartiromo "individuals need protections as well as institutional investors."

All-in-all, Dear remains positive about the road ahead for the economy and market. Dear said 'cost-cutting, stimulus and super low interest rates have restored confidence."

Donna Burton contributed to this article

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