A giant public pension brought significant investment changes in the first quarter.
The Montreal Public Sector Pension Investment Board has halved its
(ticker: T) in the first quarter and nearly doubled its investment in the electric vehicle giant
(TSLA). The agency also bought more shares of the burger giant
(MCD) and Chinese electric vehicle manufacturer
The investment board disclosed the transactions, inter alia, in a form he filed with the Securities and Exchange Commission. As of March 31, the Investment Office managed over $ 140 billion in assets.
The agency sold 963,848 AT&T shares at the end of March with 677,727 shares of the telecommunications giant.
AT&T stock rose 5.2% in the first quarter, just behind the
S&P 500 Indices
5.7% increase. So far in the latter, however, stocks have slipped 2.8%, while the index has gained 5.8%.
AT&T shocked investors earlier this month when the company announced that its dividend would be reduced during the restructuring. AT&T is leaving the media business and will focus on telecommunications. CEO John Stankey said the declining dividend “will remain incredibly attractive compared to other dividend opportunities in the market.” Shares slipped after the announcement, but Stankey bought AT&T shares in the open market.
The investment board bought an additional 44,860 Tesla shares to end the first quarter with 104,410 shares.
Tesla stock has fallen so far in 2021. Shares have fallen 5.3% in the first quarter and so far in the second they have lost 6.4%.
Lately, a series of unfavorable headlines have weighed on Tesla shares. Still, stocks are likely to rise at times with no apparent news. Tesla’s significant position in Bitcoin could have dipped into the red with the cryptocurrency falling. Either way, CEO Elon Musk said Bitcoin would no longer be acceptable for payment for Tesla vehicles, citing environmental reasons.
McDonald’s shares rose 4.5% in the first quarter and so far in the second it has gained 4.3%.
The fast food giant crushed its estimates when it released its first quarter results in late April. McDonald’s said in May it was increasing wages at company-owned stores.
The investment board bought an additional 57,450 McDonald’s shares during the quarter to end with 430,251 shares.
The agency purchased an additional 69,077 US NIO Certificates of Deposit to bring its investment to ADR 192,337.
ADR NIOs fell 20% in the first quarter and slipped 1.0% so far in the second.
NIO is facing the chip shortage which is hurting several industries and increasing competition. NIO noted that it expects the semiconductor problem to ease in June and July.
Corrections and amplifications
An earlier version of this article misidentified the pension fund that cut its stake in AT&T in the first quarter and bought more shares of Tesla, McDonald’s and NIO. It was the Montreal Public Sector Pension Investment Board, not the Wisconsin State Investment Board.
Inside Scoop is a regular Barron column that covers the stock transactions of corporate executives and board members (called insiders), as well as major shareholders, politicians and other prominent people. Due to their insider status, these investors are required to disclose stock transactions to the Securities and Exchange Commission or other regulatory groups.