At stake was nearly $890 million in funds to be allocated through the end of next year, according to the Associated Press. Although much of that sum was expected to flow into the coffers of the eventual Republican candidate for president, a potent irony pervaded the proceedings, relating to Jeb Bush. “The Kochs began their donor gatherings in 2003, a reaction to what they saw as out-of-control government growth when his brother George W. Bush was president,” as AP noted.

The confab took place at a scenic and secluded oceanfront hotel in Dana Point. A certain amount of privacy has long been standard operating procedure, with the Kochs themselves playing more of a behind-the-scenes role. “The Koch operation is not expected to formally back any candidate in the GOP primary,” as Kenneth Vogel observed at Politico. “But the Koch brothers and many of their donors can still play kingmaker roles. In addition to the massive checks many are expected to write to the super PACs aligned with specific candidates, they also serve as bellwethers for other donors.”

Jockeying candidates

Even before the event, scuttlebutt surrounded the field of Republican candidates. Not all were present. Rand Paul, who “underwhelmed donors” at a prior event, declined this time around, as Eliana Johnson reported for National Review. One Koch official told Johnson “that Chris Christie wasn’t invited because the powers that be in Koch world think he has a crummy fiscal record in New Jersey.”

Nor did Donald Trump receive an invitation. (Trump would later mock the meeting on Twitter as an assemblage of would-be “puppets” lacking his own money muscle.)

That left the Koch brothers to sit down with Jeb Bush, Ted Cruz, Carly Fiorina, Marco Rubio and Scott Walker.

Although the attendees each had their chance to speak, few were out to make headlines. Marco Rubio, known for his hawkish approach to foreign policy, did use California’s sometimes idyllic isolation from the east coast political establishment to sharpen his rhetoric on Iran’s nuclear program. “Iran will be not just a nuclear weapon power, but will have the capability to deliver that weapon to the continental United States in less than a decade,” he said, according to Time. “I don’t think any of us wants to live in a country where a radical Shiite cleric in Tehran can have a nuclear weapon and an ICBM that can hit where we are sitting right now.”

Policy over politics

But the weekend was not restricted to presidential politics. “Koch network leaders briefed some 450 donors, who pledge six-figure sums to become members of the Freedom Partners organization, on their policy and philanthropic goals for the 2016 cycle,” CNN reported.

The itinerary reflected an agenda more variegated than the Koch organization is often given credit for. “While the network has become arguably the most powerful force in Republican politics today, Charles Koch, in his welcoming speech, called out both parties for big spending, reckless foreign policy and corporate welfare,” Politico noted.

Sessions were varied. One, drawing hundreds, “focused on legislation that would limit mandatory minimum sentencing, as well as other forms of criminal justice reform,” according to CNN. “At an evening reception, the featured speaker was Dr. Michael Lomax, president of the United Negro College Fund.”

In fact, some present at the meeting suggested that too much attention had been paid to the relatively glitzy and competitive race for the GOP nomination. Longtime donor Art Pope told Politico that the spotlight belonged a bit deeper in the weeds. “The main point of this weekend’s seminar is not the elected officials or the candidates. In fact, it’s not about candidates at all. It is more about policies and issues,” he said.

In 2010, for example, the California Public Employees’ Retirement System faced criticism for “thumbing its nose” at a state law written by Sen. Joel Anderson, R-El Cajon, intended to force CalPERS to divest in firms doing business with Iran.

Calpensions.com explained this defiance at the time:

Consultants have estimated that boycotts of corporate stocks to end racial apartheid in South Africa and reform the tobacco industry cost CalPERS and CalSTRS billions of dollars, with no hard evidence of any results.

Now when pressured to sell or “divest” investments, a new policy adopted by the California Public Employees Retirement System last year gives priority to the “fiduciary duty” to manage money for the benefit of retirees.

Pressure to sell or “divest” investments for other reasons is met by “constructive engagement” with targeted corporations, if dumping the holdings and barring future purchases are not in the best financial interest of members of the retirement system.

CalSTRS more pliant than CalPERS

Now CalPERS and CalSTRS are facing new pressure to take stands on issues. Senate President Pro Tem Kevin de Leon, D-Los Angeles, is pushing a bill that could force the giant pension funds to begin scrapping their coal investments.

CalSTRS is taking a less pugnacious stand than CalPERS did over Anderson’s law. According to Capitol Weekly, “The CalSTRS board directed its staff and consultants last week to evaluate the risk of investments in thermal coal companies, jumping ahead of pending legislation that would require CalSTRS and CalPERS to divest thermal coal holdings.”

But CalSTRS is in a bind over demands from the California Federation of Teachers that it end its investments in gun makers. More from Capitol Weekly:

Last week the California Federation of Teachers led a large and emotional protest of the CalSTRS failure to divest holdings in the manufacturer of an assault rifle used to kill 20 children and six educators at a Connecticut elementary school in December 2012.

“CalSTRS has hundreds of billions in investments,” Jeff Freitas, CFT secretary-treasurer, told the board. “Even if we take a loss in removing this portfolio from our retirement fund, it is the right thing to do.”

CalSTRS quickly sold $3 million in stock of two other gun manufacturers. But its holding in the assault rifle manufacturer, estimated at $8.8 million two years ago, is part of a $375 million investment in a long-term Cerberus private equity fund.

If it broke the Cerberus contract, CalSTRS could suffer a major financial loss and, some fear, perhaps the ability to contract in the future with top private equity funds, which are expected to provide above-market returns.

Investment czar: Divesting doesn’t cause change

While CalSTRS seems more willing than CalPERS to change its investments to take political stands, Chris Ailman, its top investment advisor, isn’t convinced this approach makes sense. He made his views known at the last CalSTRS board meeting:

“I’ve been involved in five divestments for our fund,” Ailman told the CalSTRS board last week. “All five of them we’ve lost money, and all five of them have not brought about social change.”

This observation about divestment being symbolic, not consequential, appears particularly on point with gun manufacturers, given constitutionally guaranteed rights of gun ownership.

Video 1: Scott Walker on right-to-work and Obama criticism.

Video 2: Scott Walker on Iran, Russia and Keystone XL.

Video 3: Scott Walker on medical marijuana, same-sex marriage.

Video 4: Scott Walker advances immigration plan.

Video 5: Scott Walker on winning the millennial vote.

Video 6: 2016 Showdown: Scott Walker vs. Jeb Bush.