Calpers cuts its Magnificent Seven holdings by 26% and pivots toward private equity as the AI rally falters

California's $640 billion pension fund Calpers is moving away from big US tech stocks and increasing its exposure to private equity, the FT reported on 23 October. Deputy chief investment officer Anton Orlich said the fund has traded large exposure to seven companies for several hundred firms to diversify equity risk. According to FT calculations from regulatory filings, Calpers cut the number of Magnificent Seven shares it holds directly by 26% in the first half of 2026. The report came as the Nasdaq fell 2.6% on 22 October, its steepest drop since June, amid worries about AI capital spending.