Investors should tilt their portfolios to U.S. stocks, but it may be time to start considering opportunities overseas, the chief investment officer of the nation's second-largest pension fund told CNBC on Wednesday.
"We still have a home-country basis and that's really paid off," said Christopher Ailman of the California State Teachers' Retirement System, with $193 billion in assets under management. "If you want to bet on the ECB [European Central Bank] or the Fed, I'd bet on the Fed."
"[But] looking forward, the U.S. is fairly mature," said the CalSTRS CIO—appearing on "Squawk Box" from the "Delivering Alpha" conference presented by CNBC and Institutional Investor.
"We think there are some interesting opportunities in Japan," Ailman continued. "Different parts of Europe have gotten cheap. It's too early for me [in Europe], but we'll watch it."
CalSTRS has 57.4 percent allocation in global equities and just 15.7 percent in fixed income.
"When you have problems in the rest of the world, the 30-year bond is the one thing that rallies, said Ailman. "The dollar, the yen, and 30-year bond—that's your hedge."