By Ed Lin May 16, 2020
Calpers reduced its investment in Facebook to 5.4 million shares.
Photograph by Sean Gallup/Getty Images
The largest U.S. public pension by assets made some big moves in its major stock investments in the first quarter, a perilous period for public pensions as the coronavirus pandemic spread.
California Public Employees’ Retirement System, known as Calpers, lowered its investments in Facebook (ticker: FB), Bank of America (BAC), and Walt Disney (DIS) stock in the first three months of 2020. The pension also bought Verizon Communications stock (VZ). Calpers disclosed the trades in a form it filed with the Securities and Exchange Commission.
Calpers declined to comment on its stock transactions.
Facebook stock slipped 18.7% in the first quarter, but in the second through Wednesday’s close it has more than erased that loss with a 26.4% rise. In comparison, the S&P 500 index has gained 10.8% in the second quarter.
The social-media giant got a boost after the company noted a rebound in advertising revenue in April . Facebook also beat first-quarter revenue estimates.
The pension sold 300,400 Facebook shares in the first quarter, lowering its investment to 5.4 million shares.
Calpers sold 1.54 million Bank of America shares in the quarter to end March with 18.4 million shares.
Bank of America stock crumbled 39.7% in the first quarter but has eked out a 1.0% gain in the second.
The banking giant reported a first quarter that was roiled by rising credit costs. But one observer told us that Bank of America doesn’t get “enough credit for how much it de-risked its loan book” since the last financial crisis.
The pension sold 1.31 million Disney shares in the first quarter to cut its investment to 3.93 million shares.
Disney stock crumbled 33.2% in the first quarter, as its theme parks have closed , and the lack of live sports have hobbled its broadcast operations. Shanghai Disneyland reopened on a limited basis earlier in May after being closed for nearly four months. In the second quarter, Disney stock has gained 12.9%.
Calpers bought 3.1 million additional Verizon shares in the first quarter to lift its investment to 23.6 million shares of the telecom and media giant.
Verizon stock slipped 12.5% in the first quarter, and it has managed to rise 1.8% in the second. We’ve noted that cord-cutting continues to hurt Verizon and peers , but the company’s first-quarter earnings were strong .
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. Because of their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
The largest U.S. public pension by assets made some big moves in its major stock investments in the first quarter, a perilous period for public pensions as the coronavirus pandemic spread.
California Public Employees’ Retirement System, known as Calpers, lowered its investments in Facebook (ticker: FB), Bank of America (BAC), and Walt Disney (DIS) stock in the first three months of 2020. The pension also bought Verizon Communications stock (VZ). Calpers disclosed the trades in a form it filed with the Securities and Exchange Commission.
Calpers declined to comment on its stock transactions.
Facebook stock slipped 18.7% in the first quarter, but in the second through Wednesday’s close it has more than erased that loss with a 26.4% rise. In comparison, the S&P 500 index has gained 10.8% in the second quarter.
The social-media giant got a boost after the company noted a rebound in advertising revenue in April . Facebook also beat first-quarter revenue estimates.
The pension sold 300,400 Facebook shares in the first quarter, lowering its investment to 5.4 million shares.
Calpers sold 1.54 million Bank of America shares in the quarter to end March with 18.4 million shares.
Bank of America stock crumbled 39.7% in the first quarter but has eked out a 1.0% gain in the second.
The banking giant reported a first quarter that was roiled by rising credit costs. But one observer told us that Bank of America doesn’t get “enough credit for how much it de-risked its loan book” since the last financial crisis.
The pension sold 1.31 million Disney shares in the first quarter to cut its investment to 3.93 million shares.
Disney stock crumbled 33.2% in the first quarter, as its theme parks have closed , and the lack of live sports have hobbled its broadcast operations. Shanghai Disneyland reopened on a limited basis earlier in May after being closed for nearly four months. In the second quarter, Disney stock has gained 12.9%.
Calpers bought 3.1 million additional Verizon shares in the first quarter to lift its investment to 23.6 million shares of the telecom and media giant.
Verizon stock slipped 12.5% in the first quarter, and it has managed to rise 1.8% in the second. We’ve noted that cord-cutting continues to hurt Verizon and peers , but the company’s first-quarter earnings were strong .
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. Because of their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
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