CalPERS has taken a $4.2 billion hit on its real estate portfolio in the second quarter of 2009, IPE reports. The real estate portfolio was structured more aggressively than the benchmark and mainly targeted housing, land purchase, development and leverage.

CalPERS faced its biggest loss in a core strategy separate account relationships with CalEast Global Logistics, run by LaSalle Investment Management. The portfolio had been valued at $3.8 billion in the first quarter, but its value fell to $1.52 billion by the end of June 2009.