CalPERS, the California pension fund which is a major limited partner in venture capital funds here, apparently sold its stake in Palomar Ventures III, L.P. partner at Palomar Ventures declined to comment, saying that the firm has a "hard and fast" policy of not commenting on matters related to LPs. disclosure; however, CalPERS did say that it committed $25 million in 2004 to Palomar Ventures III, L.P., sometime earlier this year. CalPERS has been selling funds on the secondary market as it seeks to pare down its holdings.