Quoting an exclusive interview with a senior executive, a British media outlet reports that California's pension giant is reducing its exposure to large U.S. technology companies while increasing its allocation to private equity.
According to the media report, Anton Orlich, Deputy Chief Investment Officer of the California Public Employees' Retirement System (Calpers), said the organization has trimmed its holdings in the Magnificent Seven tech giants and shifted into hundreds of other companies in order to diversify its equity risk.
Based on regulatory filings, the media outlet calculated that during the first half of 2026, the fund slashed its combined directly held stakes in the so-called "Magnificent Seven" U.S. stocks by 26%. These stocks include Apple, Microsoft, Alphabet Inc., Amazon, Nvidia, Meta Platforms Inc., and Tesla.
Orlich told the media outlet that valuations in the public equity market are elevated and highly concentrated in a small number of individual stocks that could potentially underperform. By contrast, pricing levels for private companies are more attractive and, if public markets eventually decline, would help provide protection for Calpers.
The technology stocks that drove U.S. equities through a four-year bull run bore the brunt of this week's sell-off, mainly because earnings reports from large tech companies raised doubts about whether AI spending can recoup its costs.
With Microsoft, Amazon, and Alphabet expected to report earnings next week, the tech sector will face a new test.
Calpers is the largest public employee pension fund in the United States, with assets totaling $637.1 billion as of June 30.
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