Source: Steven Brull, Institutional Investor, April 2007
A little learning is a dangerous thing. But not when it comes to running the nation’s second-biggest pension fund. For years the California State Teachers’ Retirement System was the epitome of a creaky, mismanaged bureaucracy, toiling in the shadow of its cross-town sibling, the California Public Employees’ Retirement System. Its membership—public school and community college teachers—felt neglected. Its investment staff was underpaid. Its returns in most years were at best mediocre. That has all changed. CalSTRS has awakened from its slumber, emerging as a powerful force on the local and national stage.