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Mega pension considers slashing hedge funds: Report

Signage stands outside the offices of the California Public Employees' Retirement System (Calpers) in Sacramento, California.
Ken James | Bloomberg | Getty Images

The largest public state pension in the U.S. could be cutting its allocation to hedge funds by half.

That's what a report in trade publication Pensions & Investments said Monday, citing unnamed sources. The California Public Employees' Retirement System has $5.1 billion in hedge funds as of March 31, about 1.8 percent of the $288 billion portfolio.