After Sandy Hook, a bold collective move to take the union's money out of guns.
Immediately after the mass shooting at Sandy Hook Elementary School in Newtown, Conn., in December, managers for the California State Teachers’ Retirement System (CalSTRS) began divesting from companies that make and sell assault weapons.
CalSTRS, the retirement system for more than 800,000 California teachers, is the nation’s second-largest public pension fund. It has about $750 million invested with the private equity company Cerberus Capital Management. Cerberus owns the Freedom Group, which makes the Bushmaster M4A3 semi-automatic rifle used at Sandy Hook. When media reports began drawing attention to the origins of that weapon, investment staff at CalSTRS decided the fund could not support the Freedom Group.