Calpers Boosts Stake in Intel, Nvidia, and Disney, Trims Position in Netflix
Calpers, the largest public pension fund in America, has made significant changes to its investment portfolio. In the fourth quarter of last year, Calpers increased its stake in Intel, boosted its investment in Nvidia, purchased more shares of Walt Disney, and reduced its position in Netflix. These trades were disclosed in a form filed with the Securities and Exchange Commission.
When asked for comment on these investment changes, Calpers stated that it is an index investor and does not comment on individual holdings. Calpers is not only the largest public pension fund in America but also one of the biggest private-equity investors globally.
During the fourth quarter, Calpers purchased an additional 8.1 million shares of Intel, bringing its total to 16.1 million shares. Despite a 14% slump in Intel’s stock so far this year, the company saw a 90% surge in 2023, compared to a 24% rise in the S&P 500 index.
Nvidia, another chip investment for Calpers, had a remarkable 2023 with its stock skyrocketing 238%. So far in 2024, shares are up 46%. The strong investor interest in artificial intelligence has contributed to this surge, and Nvidia’s CEO, Jensen Huang, has predicted that 2024 will be a “huge year” for the technology. Meta Platforms and Tesla are among the companies planning to invest billions of dollars in Nvidia chips.
Calpers also increased its investment in Disney, purchasing an additional 1.7 million shares in the fourth quarter, bringing its total to 6.6 million shares. Disney recently reported strong earnings, provided an optimistic outlook, and raised its dividend, leading to a significant increase in its stock price. The company is also partnering with Fox and Warner Bros. Discovery to create a platform for streaming sporting events.
In contrast, Calpers trimmed its position in Netflix by selling 28,464 shares. However, the pension fund still holds 785,855 shares in the streaming giant. Despite competition from Disney, Netflix had a successful 2023, with its shares gaining 65%. So far in 2024, shares are up 15%. Netflix’s strong subscriber growth and growing number of monthly active users on its ad-based plan have contributed to its success.
These investment changes by Calpers reflect its strategy as an index investor and indicate its focus on key sectors such as chips and media. It will be interesting to see how these investments fare in the coming months and whether Calpers continues to make adjustments to its portfolio.
Analyst comment
Positive news: Calpers increased its stake in Intel and Nvidia, and purchased more shares of Walt Disney. These companies have seen strong performance and have positive growth prospects, especially in the chip and media sectors. It shows Calpers’ investment strategy as an index investor. The market is expected to respond positively to these investments in the coming months.
