Canadian Pension Plan Investment Board increased holdings in Apple, General Electric, and Intel stock, and trimmed a position in Coca-Cola stock.
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One of the largest pensions in the world recently bought more shares of the maker of iPhones, and loaded up on large-cap stocks that lagged behind the market in 2020.
Canadian Pension Plan Investment Board disclosed that it invested more in Apple (ticker: AAPL) stock, significantly lifted its stakes in General Electric ( GE ) and Intel (INTC), and trimmed holdings in Coca-Cola (KO). The CPPIB disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission.
The CPPIB, which managed assets totaling $376 billion at Dec. 31, declined to comment on the moves.
The pension bought 969,407 more Apple shares in the fourth quarter to end 2020 with 7.3 million shares.
Apple stock surged 80.8% in 2020, but so far in 2021, it has slipped 8.5%. In comparison, the S&P 500 index, a measure of the broader market, rose 16.3% last year, and is up 2.3% so far in 2021.
Buzz is building for the upcoming iPhone, just a few months after the arrival of the iPhone 12 lineup, and related orders seem to be flowing from Apple through its supply chain. One analyst expects more MacBook Pro laptop models this year. Most intriguing, though, are rumors that Apple is developing a car.
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The CPPIB nearly quintupled its investment in GE stock by buying 6 million more shares of the conglomerate to end the fourth quarter with 7.6 million shares.
GE stock slipped 3.2% in 2020, but it has wiped out that loss and more with a gain of 25.9% so far in 2021.
Shares of GE got a lift near the end of January as its fourth-quarter results showed the company is generating plenty of free cash flow. One bullish analyst subsequently wrote that GE stock could hit $15, while the stock closed Friday at $13.60. A recovery in manufacturing has benefited GE and its industrial peers.
Intel stock slid 16.8% in 2020, but it has more than made up for that loss by surging 21.9% year to date.
Intel announced a CEO change in January, and outgoing CEO Bob Swan bought stock near the end of his tenure. Intel has been considering outsourcing chip production, but new CEO Pat Gelsinger has said the company will continue to make the majority of its chips in house.
The pension bought 2.67 million more Intel shares, swelling its holdings to 2.74 million shares of the chip giant at year-end 2020.
CPPIB sold 473,458 Coca-Cola shares in the fourth quarter, trimming its holdings to 4.9 million shares of the beverage giant.
Coca-Cola stock slipped 1% in 2020, and so far in 2021 it has slipped 7.4%.
Coca-Cola stock is a top Barron’spick for 2021. “With half of its sales coming from restaurants, stadiums, and other out-of-home locations, Coca-Cola was slammed by the pandemic,” we wrote. “Yet as the world normalizes in 2021, it stands to benefit.” The company reported upbeat fourth-quarter earnings in early February. Also last month, Randall Eley, manager of the portfolio manager of the Edgar Lomax Value fund (LOMAX), told us he was upbeat on the shares.
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. 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 protected] and follow @BarronsEdLin.
