Ed Lin
America's largest public pension recently pulled back on some media and telecom investments, exited a fitness stock, and doubled down on a biotech.
California Public Employees' Retirement System slashed investments in Verizon Communications and Walt Disney stock, sold all of its Peloton Interactive shares, and bought up Moderna shares in the first quarter. Calpers, as the pension is known, disclosed the stock trades, among others, in a form the pension filed with the Securities and Exchange Commission.
"We do not comment on our individual holdings or trades," Calpers said in response to a request for comment. The pension manages $500 billion in assets.
Calpers sold 1.9 million Verizon shares and 1.9 million shares of Disney to end the first quarter with 15.6 million shares and 4.8 million shares, respectively. Both shares beat the market in the first quarter, with Verizon's rising 11.3% and Disney's soaring 36%, compared with a 10% rise in the S&P 500. So far in the second quarter, Verizon stock is down 7.3%, Disney stock has dropped 7.1%, and the index has slipped 2.4%.
Verizon lost fewer prepaid phone connections than expected in the first quarter. Last month, Disney said it was losing a top technology executive involved in major projects from ESPN's streaming efforts, Hulu's integration with Disney+, and a new sports-betting venture.
An executive transition at Peloton in the past week saw Barry McCarthy stepping down as president and CEO.
Peloton stock slid 30% in the first quarter, and so far in the second, it is down another 20%.
Calpers sold 460,759 Peloton shares to end the first quarter with none. The pension bought 538,900 Moderna shares to lift its stake to 1.1 million shares at the end of the first quarter.
Moderna in the past week reported a strong first quarter, and investor focus is now set on a regulatory decision on approval of the company's RSV vaccine on May 12.
Moderna stock rose 7.1% in the first quarter, and so far in the second shares are up 17%.
Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
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May 05, 2024 03:00 ET (07:00 GMT)
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