Calpers Makes Significant Changes to its Stock Holdings
Calpers, the largest public pension in America, has made some major adjustments to its stock holdings, according to a filing with the Securities and Exchange Commission. The pension fund has doubled down on Intel stock, increased its investment in Nvidia, acquired more shares of Walt Disney, and trimmed its position in Netflix. With over $480 billion in assets, Calpers is known for being one of the largest private-equity investors in the world. However, the pension declined to comment on the specific reasons for these investment changes.
Calpers Doubles Down on Intel, Shows Confidence in Chipmaker
In the fourth quarter, Calpers purchased an additional 8.1 million shares of Intel, bringing its total holdings to 16.1 million shares. This move comes despite Intel’s stock experiencing a dip in late January due to disappointing guidance. However, Intel CEO Pat Gelsinger’s purchase of the stock dip may have reassured Calpers about the company’s prospects. It’s worth noting that Intel recently named a new head of artificial intelligence in an effort to compete with Nvidia, a major player in the semiconductor industry.
Calpers Increases Stake in Nvidia Amidst AI Boom
Calpers also boosted its investment in Nvidia by acquiring an additional 1.8 million shares, totaling 7.5 million shares by the end of the fourth quarter. The chipmaker’s stock has skyrocketed by 238% in 2023, and its CEO, Jensen Huang, has expressed optimism for the future. Nvidia’s chips are in high demand, with Meta Platforms planning to own billions of dollars worth of Nvidia chips by the end of this year, and Tesla dedicating over $500 million to Nvidia hardware in 2024. Calpers’ increased stake in Nvidia reflects the ongoing investor enthusiasm for artificial intelligence.
Disney Secures Calpers’ Confidence with Strong Performance
Calpers acquired an additional 1.7 million shares of Disney in the fourth quarter, increasing its investment to 6.6 million shares. This follows positive earnings reports and an optimistic outlook from the entertainment conglomerate. Disney’s recent announcement, in collaboration with Fox and Warner Bros. Discovery, to create a platform for streaming sporting events has also boosted investor confidence. Despite facing new challenges, Disney’s stock has seen a 20% increase so far in 2024, indicating that Calpers’ faith in the company’s future prospects is well-founded.
Calpers Reduces Stake in Netflix Amidst Competitive Streaming Landscape
In contrast to its increased investments, Calpers decided to trim its position in Netflix, selling 28,464 shares and reducing its overall holdings to 785,855 shares. This move comes as Netflix experiences strong subscriber growth and solid performance in the fourth quarter. However, the streaming giant faces fierce competition from Disney and others in the industry. Despite this, BofA Securities has declared Netflix the winner of the streaming wars, emphasizing the company’s ability to adapt and stay ahead of the game.
Calpers’ Stock Adjustments Reflect Evolving Market Landscape
Calpers’ recent stock trades reflect its efforts to adjust its holdings amidst changing market conditions. The pension fund’s increased investments in chip companies such as Intel and Nvidia demonstrate its confidence in the growing role of artificial intelligence. On the other hand, its decision to reduce its stake in Netflix indicates the competitive challenges faced by the streaming giant. With the evolving landscape of technology and entertainment, Calpers continues to adapt its investment strategy to navigate these changing dynamics.
Analyst comment
Positive news: Calpers doubles down on Intel, increases stake in Nvidia, and acquires more shares of Disney. These investments indicate confidence in the companies’ prospects and positive performance in their respective industries.
Negative news: Calpers trims its position in Netflix. This decision suggests concerns about competition in the streaming industry and potential challenges for Netflix.
Neutral news: Calpers makes adjustments to its stock holdings based on changing market conditions. The pension fund’s actions reflect its effort to adapt and navigate the evolving landscape of technology and entertainment.
Market outlook: Calpers’ increased investments in chip companies and Disney, along with its reduced stake in Netflix, show its focus on the growing role of artificial intelligence and the competitive challenges faced by the streaming industry. The market will likely respond positively to Calpers’ confidence in Intel and Nvidia, but the impact on individual stock prices may vary.
