From the Sacramento Bee:
CalPERS fires partner in struggling winery investments
CalPERS expected to harvest a fortune from lush fields of chardonnay, cabernet sauvignon and pinot noir.
But like many of the pension fund's big-time real estate deals of the past decade, the pension fund's investment in the wine industry turned sour.
After pouring $200 million into vineyards across California, Oregon and Washington, CalPERS said this week that it is firing the firm that has been its investment partner and land manager.
The investment has lost 40 percent of its value and was worth $122 million as of March 31, the latest figures available.
The California Public Employees' Retirement System isn't bailing out of the wine business. Instead, spokesman Brad Pacheco, said CalPERS is negotiating to bring on a new partner by year's end.
The dismissal of Premier Pacific Vineyards, the Napa company that teamed up with CalPERS nine years ago, marks the latest effort by the pension fund to fix a real estate program that lost billions during the crash....MORESee also MarketBeat, Sept. 29: