CalPERS Bags Blackstone as Advisor for $1B Hedge Fund

Pension fund powerhouse California Public Employees’ Retirement System (CalPERS), dipping a big toe into hedge fund investing, has named Blackstone Alternative Asset Management as consultant. And Blackstone’s motivation, noted a hedge fund industry source, is likely to reconstruct its standing on the Street with the strategic advisory mandate for CalPERS’ $1 billion hedge fund program. Blackstone’s performance has been less than stellar, he said. “Blackstone needs to do some slave labor to rebuild its reputation,” the source said. “I wouldn’t take a job for 25 basis points as a consultant,” continued the source, who is a senior executive at one of the 35 firms CalPERS sent a request for information (RFI). He added that he did not think Blackstone would even land that much for the assignment.