The California Public Employees' Retirement System (CalPERS), which is the biggest public pension fund in the United States, made changes to its investments in the first quarter. In a recent report to the Securities and Exchange Commission, CalPERS revealed that it sold some of its shares in successful companies like Apple, Intel, NIO, and Li Auto.
CalPERS manages a significant amount of money, about $455 billion, so people pay close attention to its investment decisions.
During the first quarter, Apple's stock did really well, rising by 27%, which was more than the overall stock market's 7% increase represented by the S&P 500 index. In the second quarter, Apple's shares continued to rise, going up by 6.2%, while the index itself gained 2%. The company had a strong financial performance in the second quarter, thanks to higher-than-expected iPhone sales and an upcoming virtual-reality headset. Apple's success, along with other big tech companies, has boosted the overall performance of the S&P 500.
As part of its strategy, CalPERS sold 7 million shares of Apple in the first quarter, so it still has about 36.4 million shares as of the end of March.
Similarly, CalPERS reduced its stake in Intel by selling 1.1 million shares in the first quarter, leaving them with 9.8 million shares. Despite Intel's positive earnings report in the first quarter, the stock didn't go up much. The company's Chief Financial Officer acknowledged the challenging economic situation but expressed confidence in the demand for personal computers. Intel's stock increased by 24% in the first quarter and continued to rise in the second quarter, going up by 9.2%.
Regarding the Chinese electric vehicle manufacturers NIO and Li Auto, their stock performances were different in the first quarter. NIO's shares rose by 7.8%, while Li Auto's shares increased by 22%. However, in the second quarter, NIO's shares dropped by 23%, while Li Auto's shares continued to rise, going up by 17%.
The difference in performance between NIO and Li Auto can be attributed to their quarterly reports. NIO's report in March was disappointing, while Li Auto's report in February exceeded expectations. Also, Li Auto had better car sales in March and April compared to NIO.
Interestingly, CalPERS missed out on the rise in Li Auto's shares in the second quarter as it completely sold its position. Although CalPERS owned 1.1 million Li Auto shares at the end of 2022, it didn't have any by the end of March.
In addition, CalPERS reduced its position in NIO by selling 390,806 shares.
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