Ed Lin
One of the largest U.S. pensions recently made a big bet on two tech stocks and a healthcare company, slashing a position in a drug maker.
The State of Michigan Retirement Systems doubled a stake in Palantir Technologies, bought up Intel stock, and increased a stake in CVS Health, while it significantly reduced an investment in Bristol Myers Squibb. The pension reported the stock trades, among others, in a form it filed with the Securities and Exchange Commission.
The pension declined to comment. With net assets of more than $108.8 billion, Michigan's pension is the 21st-largest in the U.S. by assets and the 49th largest in the world.
State of Michigan Retirement Systems bought 548,400 Palantir shares in the third quarter to lift its investment to 1.06 million shares of the data-analytics firm. Palantir stock soared 117% in the first nine months of 2024, while the S&P 500 gained 21%. So far in the fourth quarter, shares are up 77%, while the index is up 2%.
Earlier this month, Palantir reported strong third-quarter earnings and raised its forecast for revenue. Palantir stock was added to the S&P 500 in September, and could be added to the Nasdaq 100, after switching its listing to Nasdaq from the NYSE.
Intel stock was removed from the Dow Jones Industrial Average earlier this month, almost exactly 25 years after joining the index. Intel more than halved a stake in artificial-intelligence firm Astera Labs not too long before the AI company's shares soared more than 70%.
Intel shares dropped 53% in the first nine months of 2024. They are up 3.8% in the fourth quarter.
Michigan's pension bought 796,200 Intel shares to end the third quarter with 2.3 million.
The pension bought 1.2 million CVS shares to end the third quarter with 3.2 million.
CVS warned in mid-October that third-quarter earnings would be weak, saying that CEO Karen Lynch was leaving the role. David Joyner, who had been president of CVS Caremark, the company's pharmacy-benefit manager, has taken the job.
CVS shares rose after the presidential election because Donald Trump's victory was seen as potentially beneficial for its operations in Medicare Advantage plans, which the government funds for seniors.
CVS stock lost 20% in the first nine months of 2024. So far in the fourth quarter, shares are down 15%.
Bristol Myers stock was flat in the first nine months of the year. The shares are up 8.7% in the fourth quarter.
At the end of October, Bristol Myers reported strong third-quarter earnings, and lifted its financial forecasts. The stock got a lift this month after rival AbbVie reported disappointing results from a schizophrenia-drug trial.
The pension sold four million Bristol Myers shares to end the third quarter with 714,100.
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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November 17, 2024 03:00 ET (08:00 GMT)
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