CalPERS set to increase hedge fund allocation

The largest public pension fund in the US is to increase its investment in hedge funds in order to boost flagging returns.

The $133.8bn California Public Employees' Retirement System's (CalPERS) pension fund will also use State Street Bank International Fund Services system to improve transparency, accounting, compliance risk monitoring and accurate reporting on its hedge fund programme.

CalPERS was hit badly by the technology bubble, seeing its assets drop by 25% over the past two years, simil