America’s largest public pension has increased bets on electric vehicle makers.
California Public Employees Retirement System bought more of its shares
Car (mark: RIVN) and
(LI) and reduced positions at the video conferencing company
Zoom Video communications
(ZM) and satellite radio operator
Sirius XM Holdings
(SIRI) in the second quarter.
Calpers, as the pension is known, reported the stock trades, among other things, in a form it filed with the Securities and Exchange Commission.
The pension declined to comment on the investment changes. As of Tuesday, it managed $467.32 billion in assets, making it the nation’s largest public pension by assets.
Calpers bought 34,622 more shares of Rivian to end the second quarter with 324,331 shares. The stock fell 75% in the first half of the year, compared with a 21% year-over-year decline
S&P 500 Index
Shares are up 34% so far in the third quarter. the index has risen 12%.
The stock soared in early July after Rivian revealed brisk sales of its electric truck.
(AMZN), a Rivian investor, raised the EV maker’s public profile when it began using Rivian delivery trucks. Earlier this month, the electric vehicle maker reported a larger-than-expected loss for the second quarter but maintained its full-year production estimates.
Beijing-based Li Auto disappointed with delivery guidance this month, but its second-quarter numbers were better than expected. We noted that Li Auto is aiming to take market share from China
(TSLA). In June, Li Auto announced it would sell up to $2 billion in new shares, putting pressure on the company’s US depository receipts.
The pension purchased an additional 152,127 Li Auto ADRs to close the second quarter with 958,705 ADRs. ADRs were up 19% in the first half of the year and so far in the third quarter ADRs are down 22%.
Calpers sold 152,219 shares of Zoom to reduce its investment to 821,014 shares. Zoom’s stock fell 41% in the first half of the year. so far in the third quarter, shares are down 8%.
Shares of Zoom remain in the red so far this year, but they have done well during the pandemic, when video conferencing from home became the norm. An observer thinks
Office collaboration software (MSFT) will hinder Zoom’s development. But analysts still see sales growth and even recession-proof earnings. The company’s first fiscal quarter, reported in May, beat expectations. It reports its fiscal second quarter on Monday after the market closes.
Sirius reported a mixed second quarter in late July, with earnings falling short of Wall Street estimates. At least one observer remains bullish on the ad outlook for Pandora’s streaming radio business. Conan O’Brien sold his podcast and media company to Sirius in May.
Calpers sold 1.1 million shares of Sirius to end the second quarter with 6.2 million shares. The stock fell 3.5% in the first half of the year. so far in the third quarter, shares are up 4.4%.
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 email@example.com and follow up @BaronsEdLin.