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Calpers Pulls Public Employee Pensions Out Of Hedge Funds

California's public employee pension is divesting its entire $4 billion stake in hedge funds. Calpers says the investment proved to be too complex and not worth the expenses. Many public pensions turned to hedge funds in hopes of boosting returns and gaining protection from market crashes, but most have lagged behind market indexes in recent years.

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Chris Arnold is a correspondent with NPR's investigations team. His reports are heard regularly on NPR's award-winning newsmagazines Morning Edition, All Things Considered and Weekend Edition.