A giant Canadian pension recently made substantial changes to its US-traded investments.
The Public Sector Pension Investment Board has cut jobs
(MSFT) and buy more
shares (WMT) in the second quarter. PSP Investments, as the pension is known, disclosed its stock transactions in a filing with the Securities and Exchange Commission.
PSP Investments, of Montreal, did not respond to a request for comment on the investment changes. It manages $180 billion in assets.
PSP Investments sold 680,541 shares of Apple to end the second quarter with 3.2 million shares of the iPhone maker. Apple shares fell 23% in the first half of the year, compared with a 21% decline
S&P 500 Index
So far in the third quarter, shares are up 25% while the index is up 12%.
Apple’s recent rise means it has the largest weighting of any stock in the S&P 500 since 1980. Warren Buffett’s Berkshire Hathaway (
) added to its stake in Apple in the second quarter. Apple’s fiscal third quarter, reported in late July, was strong.
One observer believes that Tesla may dominate the car market in the same way that Apple’s iPhone disrupted the mobile phone market by removing a dominant player. Tesla investors are probably now more focused on the company’s three-for-one stock split. Earlier this month, Tesla appeared ready to make its charging network compatible with other manufacturers’ vehicles. We think it’s a smart move, with a little risk.
PSP Investments sold 68,242 shares of Tesla to end the second quarter with 127,018 shares. Tesla stock fell 36% in the first half of the year, and so far in the third quarter shares are up 32%.
The pension sold 476,302 Microsoft shares to reduce its investment in the software giant to 1.8 million shares. Microsoft stock fell 24% in the first half of the year, and so far in the third quarter shares are up 11%.
In late July, Microsoft said on an earnings call that it saw continued double-digit growth. Resilient strength in cloud operations overshadowed weak earnings for the fourth fiscal quarter, Microsoft’s last. Earlier this month, Microsoft reportedly asked teams across the company to cut some employee expenses by limiting spending on business travel, external training and corporate gatherings.
Walmart cut hundreds of jobs earlier this month. However, second-quarter earnings, reported this month, were strong, and Walmart also raised its earnings guidance. However, some believe that rising interest rates remain a headwind for the company.
PSP Investments bought an additional 146,543 shares of Walmart stock to end the second quarter with 898,368 shares. Walmart stock fell 16% in the first half of the year, and so far in the third quarter shares are up 13%.
The Inside Scoop is a regular Barron’s feature that covers stock trading by corporate executives and board members—so-called insiders—as well as major shareholders, politicians and other prominent figures. Because of insider trading status, these investors are required to disclose stock transactions with the Securities and Exchange Commission or other regulatory bodies.
Write to Ed Lin at firstname.lastname@example.org and follow up @BaronsEdLin.