When your assets get to a certain size, there is one view that holds you can't really expect stock gains over and above beta. CalPERS apparently does not subscribe to that view. Its stock gains have exceeded the market by 25 basis points over the last few years or so, but its want up to 100 points. So it has asked its top money managers for ideas, according to Financial News Online. Goldman Sachs, Morgan Stanley, AllianceBernstein, AQR and others. The ideas were presented recently, and most seem to be along the lines of somehow separating funds to generate beta and alpha. The beta portion would rely on indexes, while the alpha portion would involve a gritty win-lose calculus. Non-generators would be paid only for alpha and would be cut if they don't perform.  

For more:
- here's the Financial News Online article

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