The California Public Employees’ Retirement System (CalPERS), America’s largest public pension fund with over $540 billion in assets, executed significant portfolio rebalancing during Q1 2024 according to its latest SEC filings. The fund dramatically reduced its Apple stake by 5.1 million shares (leaving 34.7 million shares), marking one of its most notable tech sector adjustments this year. This substantial divestment coincided with strategic increases in other major holdings, reflecting a calculated shift in investment priorities.
CalPERS deployed the capital from its Apple sales into three key positions: boosting its Meta (Facebook) holdings by 579,150 shares to reach 5.5 million total shares, adding 325,180 AMD shares for a new total of 3.3 million, and purchasing 494,290 additional McDonald’s shares to build a 3.5 million share position. This reallocation suggests the pension giant is rotating from mature tech into companies with stronger growth trajectories (Meta, AMD) while maintaining defensive exposure through consumer staples (McDonald’s). The moves occurred during a quarter when Apple shares underperformed the broader market amid iPhone sales concerns.
The restructuring highlights CalPERS’ active management approach despite its massive size, with investment decisions driven by both valuation considerations and sector outlooks. While remaining Apple’s largest institutional shareholder, the reduced position indicates cooling confidence in the tech giant’s near-term growth prospects relative to peers. The AMD and Meta bets align with bullish views on artificial intelligence infrastructure and digital advertising growth, while McDonald’s provides stability amid economic uncertainty. These adjustments will be closely watched by institutional investors as potential leading indicators for pension fund positioning trends.
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