New York (HedgeCo.Net) – A spokesman for Texas-born John Arnold has said that the hedge fund billionaire is campaigning for reform in the California public pension systems, according to a Reuters report.
The California Public Employees’ Retirement System (CalPERS) “manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families”. CalPERS is known for its shareholder activism; stocks placed on its “Focus List” may perform better than other stocks, which has given rise to the term “CalPERS effect”. Outside the U.S., CalPERS has been called “a recognized global leader in the investment industry”, and “one of America’s most powerful shareholder bodies”.
As the founder of Houston-based hedge fund Centaurus Advisors and a former trader at Enron, “Arnold is looking to fund groups supporting ballot initiatives that would scale back what critics regard as overly lavish public employee pension deals.” Reuters says.
The foundation’s stated goals on its website are improving outcomes for criminal justice, education, public accountability and research integrity. “The cost of public employee benefits in most states and communities is unsustainable,” the website states.
His reorganization plans may upset the Unions, Reuters says.
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