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LandSource Community Development has filed for Chapter 11 bankruptcy protection after some disastrous bets on certain markets. How disastrous you ask, check out the states that LandSource invested in:

• California
• Arizona
• Florida
• New Jersey
• Nevada
• Texas

Think about this, the company made the wild audacious bets on the biggest victims of the housing bubble. And I am sure for a while there returns were amazing, but the did not know when to get out.

One of their biggest investors was CalPERS, the retirement system for California pubic employees. One of the largest sources of capital in the country, CalPERS makes many bets like this and should not be significantly hurt. But I am sure the 1.5 members of the fund are not thrilled that they took this big of a hit.

The California Public Employees’ Retirement System is a major investor in LandSource, which issued a news release late Sunday to announce the bankruptcy filing in U.S. Bankruptcy Court in Delaware. The partnership’s assets include 15,000 acres of undeveloped land north of Los Angeles in the Santa Clarita Valley.

LandSource had been trying for months to restructure a $1.24 billion debt, the company said. It received a default notice on April 22 after missing a payment when a decline in the assessed value of that Southern California land holding triggered an additional charge. via the San Jose Mercury News.

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