CalSTRS becomes first public pension fund to to divest gun maker stocks
The investment committee of the $154.3 billion California State Teachers' Retirement System (CalSTRS) voted unanimously today (Jan. 9) to sell any investments in companies making firearms that the state bars private citizens from owning, as well as makers of high-capacity ammunition clips. Right after the Dec. 14 mass murders in Newtown, Connecticut, California Treasurer Bill Lockyer told Cerberus Capital Management, which owns the largest U.S. gun maker, that he would recommend that the state's two biggest pension funds divest investments in gun makers. Shortly, Cerberus said it would seek to sell Freedom Group, Inc., the gun maker that produces the Bushmaster semi-automatic rifle used in the Newtown mass murders, and other firearms. Cerberus then hired a financial adviser and put Freedom Group on the block.