Calpers seeks hedge fund concessions

NEW YORK, March 28 (UPI) -- The California public pension Calpers is demanding that the hedge funds in which it invests give it better terms, such as lower prices, a memo indicates.

The move by the giant pension fund, which has $5.9 billion in hedge fund investments, shows how financial backers of the formerly high-flying investment vehicles are unhappy because they have failed to live up to their promises of making handsome returns in good times or bad, The Wall Street Journal reported Saturday.

Calpers' demands, contained in a March 11 memo obtained by the newspaper, were sent to the 26 hedge funds and nine funds of hedge funds. Some of the hedge funds on the list include Tremblant Capital, Atticus Capital and Och-Ziff Capital Management, the Journal said.

In addition to lower prices, Calpers is seeking a reduction of "clawbacks" of fees if performance weakens. The California pension fund also is demanding that hedge managers disclose every security held in a fund, a move that appears to be an attempt by Calpers to challenge the basic ground rules for how hedge funds operate, analysts told the Journal.