Sacramento Bee
From the article:
MOUNTAIN HOUSE -- Born during the housing bubble, this San Joaquin County bedroom town was America’s most “underwater” community six years ago, a reference to the ocean of homeowners who owed more than their properties were worth.
Mountain House had another unhappy distinction: It was one of the biggest black holes in CalPERS’ investment portfolio.
At the depths of the housing-market slump, Mountain House represented a $1.06 billion loss for the California Public Employees’ Retirement System. It was a vivid symbol of the huge setbacks CalPERS suffered during the financial crisis.
CalPERS held onto its Mountain House investment, so the loss was only on paper. Now the community is coming back and CalPERS stands to benefit. The pension fund’s investment is still deep in the red, with an estimated negative value of around $870 million, but CalPERS officials say they believe Mountain House will eventually turn into a winner.
“In the long picture of things, we think CalPERS will be rewarded,” said Ted Eliopoulos, the fund’s interim chief investment officer, in a recent interview.