America's largest public pension fund significantly reduced its holdings in the "Magnificent Seven" tech giants, shifting towards increased allocation in private equity.

BlockBeats news, October 23, according to the UK's Financial Times, the largest U.S. public pension fund, the California Public Employees' Retirement System (Calpers), is adjusting its asset allocation, reducing direct holdings in the "Magnificent Seven" tech giants while increasing private equity exposure to reduce concentration risk in public equity investments.

Based on regulatory filings, Calpers cut its total directly held shares in Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla by 26% in the first half of 2026. The fund shifted toward diversifying across hundreds of companies, reducing concentrated investment in a handful of leading firms.

Calpers Deputy Chief Investment Officer Anton Orlich confirmed this allocation direction in an interview. He stated that public equity market valuations are already at elevated levels, with high concentration in a few leading companies, and relative returns may come under pressure. By contrast, private company pricing is more attractive, helping Calpers gain a buffer when public markets decline.

This rebalancing occurred before the recent concentrated selloff in tech stocks. After several tech giants reported earnings this week, market doubts intensified over whether AI spending can translate into actual returns. Microsoft, Amazon, and Alphabet will report results successively next week, and the tech sector still faces further tests.

As of June 30, Calpers' assets under management reached $637.1 billion. Data published by the fund in July showed a preliminary net investment return of 14.8% over the past 12 months, with both public and private equity portfolios performing strongly.