The largest public pension in the United States has upped the ante for electric vehicle makers.
The California Public Employees’ Retirement System bought more shares of
Automotive (code: RIVN) and
(LI), and reduction of positions in a videoconferencing company
Zoom video communications
(ZM) and satellite radio station
Sirius XM Holdings
(SIRI) in the second quarter.
Calpers, as the pension is known, reported the stock trades, among others, on 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 country’s largest public pension by assets.
Calpers bought an additional 34,622 shares of Rivian to end the second quarter with 324,331 shares. Shares are down 75% in the first half of the year, compared with a 21% drop in
S&P 500 Index
Stocks are up 34% so far in the third quarter; the index rose 12%.
Stocks soared in early July after Rivian reported brisk sales of its electric pickup.
(AMZN), a Rivian investor, raised the public profile of the EV maker when it started using Rivian delivery vans. Earlier this month, the electric vehicle maker reported a larger-than-expected second-quarter loss but kept its full-year production estimates.
Beijing-based Li Auto was disappointed with its delivery forecast this month, but its second-quarter numbers were better than expected. We observe that Li Auto aims to gain market share in the Chinese
(TSLA). In June, Li Auto announced it would sell up to $2 billion in new stock, putting pressure on the company’s American depositary receipts.
The pension purchased an additional 152,127 Li Auto ADRs to end the second quarter with 958,705 ADRs. ADRs are up 19% in the first half, 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 shares are down 41% in the first half of the year; so far in the third quarter, the shares are down 8%.
Zoom’s stock remains in the red so far this year, but it did well during the depths of the pandemic, when home video conferencing became the norm. An observer thinks
Office collaboration software (MSFT) will hinder Zoom’s growth. However, analysts still see sales growth and even recession-resistant profits. The company’s first fiscal quarter, released in May, exceeded expectations. It reports the second fiscal quarter on Monday, after the market closes.
Sirius reported a mixed second quarter in late July, with earnings below Wall Street’s estimates. At least one observer remains cautious about the ad prospects for his Pandora 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. Shares fell 3.5% in the first half of the year; so far in the third quarter, stocks are up 4.4%.
Inside Scoop is a regular Barron feature that covers stock transactions by corporate executives and board members – so-called insiders – as well as major 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 email@example.com and follow @BarronsEdLin.