The Califrornia State Teachers' Retirement System, the second-largest pension fund in the U.S., announced in an official release that it's going to exit from stocks of certain firearms makers. In particular, this means Smith & Wesson (NASDAQ:AOBC) and Sturm Ruger (NYSE:RGR).
Although CalSTRS does not hold relatively large stakes in either manufacturer -- it has around $1.1 million worth of the former, and $1.8 million in the latter -- the fund's size and prominence make it likely that the move will be followed by other large financial investors.
The CalSTRS divestment follows a call from California State Treasurer Bill Lockyer to exit from firms that make firearms prohibited by law to be sold or owned in the state.
Eric Volkman has no position in any stocks mentioned. The Motley Fool owns shares of Sturm Ruger. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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