One of the first divestitures I recall was from investments in South Africa due to apartheid. And CalPERS didn't have a choice. Legislation was passed and signed by George Deukmejian. There is nothing illogical about using moral or ethical criteria in investing. Pornography is a big business, and growing, but I don't see a big push for CalPERS to invest there. 

Mr. Howe does have an interesting idea, though ("According to the LA Daily News, "CalPERS' divestments cost it approximately $8 billion over a 15-year period, according to an October 2015 report from Wilshire Associates, CalPERS' main investment consultant.")

Why not use 20/20 hindsight to guide our investments? Wall Street honors "do-overs", right?