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