More than $2 trillion in public pension fund assets could potentially change management as these funds question the advantage of alternative investment classes and seek more reliable, less correlated choices in the wake of 2008 losses.

Alternative investments like private equity and real estate are supposed to buffer investors from losses in stocks and bonds, but pension fund managers found that in many cases, alternatives fell along with everything else during the market crash. Thus, they are now reevaluating the anticipated outcomes of alternative investments, rather than their objectives.

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