Chuck ValdesCharles "Chuck" Valdes, Chairman of the Investment Committee, California Public Employees Retirement System
During his 22 years as a CalPERS trustee, Valdes has overseen efforts to hire emerging managers, engage in shareholder activism and diversify investments. A former CalPERS staffer described Valdes as the model of what a trustee should be; he wants CalPERS to be at the cutting edge of investing and ensures he is up to speed with the latest opportunities.
"Chuck played a key role in beginning our investments in private equity and real estate early on, at a time when those assets were under stress," said CIO Russell Read. "The concept of 'sell rich, buy cheap,' he actually embodies as a trustee." CalPERS was the first major pension plan to invest in timberland in 1986. For the first 10 years, timberland delivered triple-digit returns annually.
In 1989-90, Valdes called for a study on why CalPERS didn't use minority-owned managers or service providers. He was a driving force behind the behemoth's first investments with emerging managers. Today CalPERS uses emerging managers for a range of asset classes, including hedge funds and private equity. Together with the California State Teachers Retirement System and Altura Capital, CalPERS established a database of emerging financial service providers. Monika Mantilla Garcia, ceo of Altura, said Valdes has always considered using emerging managers to be critical to CalPERS' investment success. "He's been a visionary," she noted.
Additionally, Valdes is a member of the Robert Toigo Foundation's governing board, which encourages minority students to consider careers in finance.
Valdes was a founding member of the Council of Institutional Investors. CalPERS' $5 billion corporate governance investment program is one of the best sources of alpha throughout the entire fund, with an information ratio of 0.6 and annualized returns of 15%.
Valdes is always willing to meet with managers and will tell them what they need to do to gain traction with CalPERS, said Lynne Minard, a partner at third-party marketing firm XT Capital Partners. Valdes ensures that the right people on CalPERS' investment staff are working on new initiatives so they get accomplished, she added.
In addition to chairing the investment committee, Valdes serves on CalPERS' finance, health benefits, performance, compensation and board governance committees. He is a deputy attorney for the California Department of Transportation.