As of December 31, 2013 CAlPers, the largest US pension fund with almost 255 billion, had approximately 197,000 shares of Smith & Wesson Holding Corp and 117,000 shares of Sturm Ruger &Co.
The CalPers Board voted today to divest $5 million of their shares in the two companies citing the fact that some of the weapons made by the companies are illegal in the state of California.The vote was 9-3 with many of the ayes citing the Sandy Hook incident and one of the Nays expressing concern with the premise that selling stocks of items illegal in California will start an avalanche of knee jerk sales of stocks pointing to the investment in automobiles that don't meet clean air standards in California and gasoline not available in California. It is also believed that CalPers invests in pharmaceuticals companies as well as liquor and wine companies.
The request to 'dump' Smith & Wesson and Ruger stocks came from the California State Treasurer Bill Lockyer. Addressing the CalPers Board he requested that the stocks of gun manufacturers "that manufacture for general distribution assault weapons or cheap and dangerous handguns known as “Saturday Night Specials”or high-capacity ammunition magazines which are illegal for public sale in California... illegal for sale or possession by private persons under California law."
Regulation attempts on 'Saturday Night Specials' have a history dating back to 1875. With each new act passed there were unintended consequences. Law Enforcement Agencies across the United States have had to adapt with each new law, from losing the ability to carry a back-up weapon due to lack of manufacturing because of legislation in effect to using poorly made but 'comparative' by government standard, guns. When law enforcement offices switched to polymer framed guns, Legislators had to revisit what their definition was of a 'safe' gun. While its important to note that Law Enforcement are exempt from bans and regulations the manufacturers are required to change their designs to suit the latest ban or legislation or to circumvent the legislation create the establishment of US factories by foreign gun makers. Currently most law enforcement agencies carry imported guns, Glock from Austria with factories in the US and the Sig Sauer originally from Switzerland with factories now located in the US.
The California State Teachers Retirement system also voted last month to sell their approximately $2.9 million shares invested in Smith & Wesson and Sturm Ruger & Co.
CalPers and State Teachers Retirement are not in the minority with their decision as many public funds throughout the US are divesting their weapon stocks.
by,
Charity Maness
