CalPERS reduced its exposure to major U.S. technology stocks in the first half of 2026 and increased its private-equity exposure. According to Sina Finance, citing the Financial Times, the fund cut its direct holdings in the Magnificent Seven by 26%, based on regulatory filings, and shifted investments into hundreds of companies to diversify equity risk, Deputy Chief Investment Officer Anton Orlich said.

Orlich said valuations in public equity markets were high and concentrated in a few stocks that could underperform. He said private companies' pricing was more attractive and could help protect CalPERS if public markets eventually fell.

Technology stocks, which have driven a more than four-year bull market in U.S. equities, were hit hardest in this week's selloff, amid concerns about whether major technology companies can recoup their AI spending. Microsoft, Amazon and Alphabet are expected to report earnings next week.

CalPERS is the largest public employee pension fund in the United States. Its assets totaled $637.1 billion as of June 30.