>> commissioner casciato: i'm trying to sort it out. i'm trying to sort it out if we can come to some type of compromise. >> this fits with the goal that the board has set forward to invest $1 million. it has fit within the goal of the 50% carbon constrain. we believe it will do better than the 50%. that's not the issue here necessarily. the organization seems like a solid organization as well. that's not the issue either. it really sounds like it's a process question and whether there was something that fell outside of our process. i need an understanding of whether that is true. the strategy that was approved from what i understand was to be investing in passive fund. this is not a passive fund. normally, typically what we have done with something like this? >> it was staff's intention to substitute $500 million in generation and additional $500 million passive carbon constrain strategy the goldman sachs strategy. that was not an official statement what staff intent was. i still believe you approved that we could invest up to a billio

. >> commissioner casciato. >> commissioner casciato: i read all these reports. is there anything bad news in them that you want to explain to us? anything that concern with. that not performing well. what is the bad news in this? >> i don't think there's bad news. there are characteristics of your portfolio that we discussed prior to your arrival sir. one of them is you have a big portfolio. you have a lot of names relative to your active managers represent about a third of the overall size of your private equity program. last year, we discussed the notion that this might be a good environment to reduce the size of the portfolio through some secondary sales and the secondary market continues to be robust. i think there's complexity with managing large portfolio. there's a lot of obligations that are imposed on staff monitoring 300 names. the other part of the portfolio, i think we've touched upon in the past, benchmark for private equity is unrealistic in today's environment. the s&p 500 plus 500 bases p oints a very aggressive benchmark. the 500 bases premium o

casciato present. cohen is expected. driscoll present. quorum is present. >> president stansbury: great, we're going to be going into closed session, but before that, why don't we call for public comment. is there any members of the public that would like this address the commission? seeing none, we will go into closed session. anyone who doesn't need to be here, would you please leave the room. >> ok, we're coming back into open session. is there a motion not to disclose? there is a motion. there is a second. can we -- discussion? can we take it without objection? great, item passes. mr. se

casciato present. cohen is expected. driscoll present. quorum is present. >> president stansbury: great, we're going to be going into closed session, but before that, why don't we call for public comment. is there any members of the public that would like this address the commission? seeing none, we will go into closed session. anyone who doesn't need to be here, would you please leave the room. >> ok, we're coming back into open session. is there a motion not to disclose? there is a motion. there is a second. can we -- discussion? can we take it without objection? great, item passes. mr. secretary, next item. >> general public comment. >> president stansbury: for general public comment, just for clarity for the public, you have the opportunity to comment on anything not already agendaized for the board. if you want to comment on hedge funds and they're on the agenda, it wouldn't be appropriate to comment here, but under the specific item. that being said, is there anyone who would like to talk to the board under general public comment? >