(Bloomberg View) — The news was a shock — the Calpers California earthquake.

For a variety of reasons, the California Public Employee's Retirement System, the nation's largest public-pension fund, said it was dropping hedge funds from its roster of investment allocations. This tremor will be felt far and wide.

We are unlikely to know the full impact of Calpers's decision for some time, as other pension-fund managers digest the thinking that goes into managing $300 billion in assets. It will, however, be influential. Calpers is not only the largest pension fund, but is often thought of as the most powerful. Its thoughtful managers have a reputation for making measured decisions after deep research and internal debate.