The California Public Employee’s Retirement System, better known as Calpers, is the country’s largest public pension fund with $300 billion in assets. So when it acts, investors take notice.

Calpers is going to completely shed its $4 billion dollars of hedge fund investments because it says they’re too complex and costly.

Calpers made 7.1 percent in returns on its hedge fund investments for its last fiscal year, but it also paid $135 million in fees. The pension fund has a goal for its investments of 7.5 percent returns and, as a whole, earned over 18 percent last year.

Still, it’s surprising that Calpers is getting out of hedge funds entirely, says Olivia Mitchell, the executive director of the Pension Research Council at The University of Pennsylvania’s Wharton School.

“The idea of hedge funds is they’re supposed to be protective of market downturns,” Mitchell explains. “One of the costs of that is that they don’t necessarily give the whole upside when markets rise.”

But she also said that hedge funds tend to be relatively opaque in their investments–which, combined with high fees, might prompt more pension funds to follow Calpers.

“Calpers has always been a leader in the public pension space,” says Mitchell. “Certainly others will take a good look at their hedge fund portfolios. My sense is that other cities in California are already taking a bit of a hard look…and Rhode Island and Pennsylvania are debating this issue as well.”