CalSTRS stand may be just the beginning in a purging of gun-related investments by Wall Street's largest investors, which could move faster than any prospective federal ban on assault weapons or prohibition on cartridge sizes. Already a precedent exists.
CalSTRS and the California Public Employees' Retirement System (CalPERS) were early movers in banning limited partner and stock investments in corporations that did business in South Africa during the apartheid era, and more recently, in tobacco related businesses.
A CalSTRS spokesperson Ricardo Duran said in an interview in mid-December that the fund has weighed social-action based investments since the late 1970's. Economic pressures exerted by U.S. investors and corporations were one of the factors that precipitated the end of apartheid, noted former South African president F.W. de Klerk.
In the 2000s, CalSTRS and CalPERS decided to divest of assets in the tobacco industry, according to revised investment principles.CalPERS and CalSTRS are both small investors in Smith & Wesson, Sturm, Ruger, Cabela's, Dick's Sporting Goods and they are large holders of Wal-Mart shares, according to Securities and Exchange Commission filings compiled by Bloomberg, as of Sept. 30. Shares in Smith & Wesson and Sturm, Ruger fell over 2% and just under 1% respectively in Wednesday trading. Follow @agara2004 -- Written by Antoine Gara in New York
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV