Max Whittaker/File Photo MONTEREY, Calif. (Reuters) - The California Public Employees' Retirement System (CalPERS) on Monday said it was considering making direct investments in private companies, a potential major shift in strategy that would be the first such action by a U.S. public pension fund. The change, discussed at a meeting of CalPERS board in Monterey, would be closely watched by other U.S. public pensions as they look to improve returns on their investments, in part by cutting...

(Adds information from CalPERS meeting, its private equity investments) The California Public Employees' Retirement System, or CalPERS, plans to scrutinize its private equity investments at next month's board meeting with an eye toward reviewing the governance and transparency of the asset class. Chief Investment Officer Ted Eliopoulos told the investment board on Monday that despite the high returns of its private equity investments, the negative public scrutiny of the asset class had made...