The Don't Get Fired Podcast by Stanford Long-Term Investing CalSTRS Scott Chan: Allocating Capital Dynamically Across Public And Private markets
Jan 7, 2026
Scott Chan, the Chief Investment Officer of CalSTRS, dives into innovative investment strategies for the $380 billion educator-only pension fund. He explains the shift from siloed benchmarks to a dynamic 'One Fund' approach that blends public and private markets. Topics include the rising impact of AI and the energy transition, cost-saving collaborative models, and the importance of transparency in investment decisions. Chan's insights on organizational changes and thematic investing highlight the future of capital allocation in a rapidly evolving landscape.
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Collaborative Model Delivered Big Savings
- CalSTRS pursued a collaborative model to invest more directly and save fees while boosting alpha.
- That model produced roughly $2.6 billion in cost savings and about $16 billion of alpha over a decade.
Benchmarks Create Hidden Constraints
- Benchmark-led, siloed strategic asset allocation constrains taking best opportunities and misaligns incentives.
- CalSTRS sees market dynamics and cross-cutting themes forcing evolution toward a One Fund approach.
Public And Private Markets Are Blending
- Public and private markets are converging around the same themes and capital pools.
- Cross-cutting themes like AI and the energy transition demand total-fund coordination across divisions.