CalPERS Cuts Big Tech Stakes, Adds Private Equity
The $640bn California pension fund reduced its holdings in the seven largest US technology stocks by 26% in the first half of 2026.
Updated on Nov. 5, 2026 in Investing
CalPERS reduced its combined direct shareholdings in Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla by 26% during the first half of 2026. The same period saw the pension fund increase its private equity allocations.
Why it matters
The shift reflects CalPERS' effort to diversify amid elevated public market valuations and reduce concentration risk. Its overhauled investment strategy from 2022 has directed a disproportionate share of new commitments toward venture capital and growth equity.
Holdings in the seven largest US technology stocks fell 26% in the first half of 2026, while the S&P 500 returned roughly 65% over the three years to March 2026 compared with 24% for the Cambridge Associates US private equity index over the same period. The source does not indicate whether the trend will persist beyond the reported window.
The players
CalPERS
The California Public Employees' Retirement System is a $640bn public pension fund serving California's public employees and retirees.
Roger Vincent
Roger Vincent is the founder of Summation Capital and a former head of private equity at Cornell University's endowment.
The details
CalPERS shifted investments toward a broader range of privately held businesses, including increased venture capital and growth equity commitments. Anton Orlich, the fund's deputy chief investment officer, reportedly said private companies trade at more attractive valuations than their listed counterparts.
Timeline
2022: CalPERS overhauled its investment strategy.
First half of 2026: CalPERS reduced its technology stock holdings by 26%.
March 2026: End of the three-year return comparison period.
Market Dynamics
The reallocation follows CalPERS' 2022 investment strategy overhaul, which directed a growing share of commitments toward venture capital and growth equity. The move comes as the Nasdaq 100 fell 7.7% from its early October peak.
The shift illustrates how large institutional investors are rebalancing away from concentrated public technology positions. Individual investors weighing similar diversification choices can compare public equity concentration against private market exposure.
The takeaway
Concentration in a few large technology stocks can be reduced by diversifying across asset classes, though private markets carry their own valuation and liquidity considerations. Investors should weigh return history against their own time horizon before following institutional shifts.
Further reading
For more on how institutional funds allocate across asset classes, see Investing coverage.
Source note: This article includes information reported by Private Equity Wire.
