Canada’s Public Sector Pension Investment Board (PSP Investments), one of the largest pensions in the world, has recently made changes to its portfolio of U.S.-traded investments. In a recent filing with the Securities and Exchange Commission (SEC), PSP Investments disclosed several significant stock trades.
Exiting Palantir Technologies
Among the changes, PSP Investments decided to exit its investment in data-analytics firm Palantir Technologies. This move comes as Palantir stock experienced a remarkable 150% surge in the first nine months of the year, with an additional 11% increase so far in the fourth quarter. In contrast, the S&P 500 index rose 12% in the first three quarters and has gained 7.4% in the fourth quarter.
Reducing AT&T Position
The pension fund also took steps to reduce its position in AT&T stock. AT&T faced challenges earlier this year, with its stock dropping 18% within the first nine months. An investigation by the Wall Street Journal revealed that lead contamination was linked to legacy lead-sheathed cables owned by AT&T and other telecoms. PSP Investments reacted to this information and adjusted its investment accordingly.
Increased Stakes in Intel and Nvidia
On a positive note, PSP Investments increased its holdings in chip makers Intel and Nvidia. These strategic moves indicate the pension fund’s confidence in these companies and their potential for growth in the semiconductor industry.
PSP Investments remains tight-lipped about its investment changes, declining to comment on the specifics. With approximately $180 billion in assets under management, PSP Investments ranks as the 25th largest public pension fund globally, according to the Sovereign Wealth Fund Institute.
AT&T’s Cable Ownership and Stock Movement
AT&T and its peers have expressed their confidence in the safety of their cables, stating that they do not pose a public-health risk or significantly contribute to environmental lead contamination. Despite this reassurance, AT&T’s stock price experienced a notable decline. However, analysts believe that this sell-off was an overreaction, and AT&T’s stock has already recovered, showing a 13% gain in the fourth quarter.
PSP Investments: Selling AT&T Shares, Investing in Intel
During the third quarter, PSP Investments sold 360,747 AT&T shares, resulting in a remaining ownership of 765,781 shares. Additionally, PSP Investments increased its investment in Intel by acquiring 840,614 more shares. This brought their total stake in the chip maker to 1.5 million shares. It is worth noting that Intel’s stock has seen significant growth, rising by 35% in the first nine months of the year and an additional 20% in the fourth quarter.
Intel CEO’s Purchases and Strong Earnings
In 2023, Intel CEO Patrick Gelsinger has been actively buying company stock through open market transactions. The company’s quarterly earnings reports have been robust, further supporting the rise in share price. While Intel’s stock has been performing well, it still lags behind Nvidia’s impressive performance.
Nvidia’s Dominance in AI Chips
Nvidia’s stock nearly tripled in the first nine months of this year, and it has continued to rise by 9.2% in the fourth quarter. The company’s success is largely attributed to riding the AI wave and maintaining its lead in producing exceptional AI chips. Nvidia’s commitment to consistently releasing superior AI chips ahead of its competitors sets it apart. Additionally, Nvidia is actively collaborating with the U.S. government to ensure that its next generation of chips can be exported to China despite current restrictions on chip sales to that country.
PSP Investments: Expanding Nvidia Holdings
During the third quarter, PSP Investments purchased an additional 128,491 Nvidia shares, bringing their total holdings to 656,780 shares.
Inside Scoop provides regular coverage of stock transactions made by insiders, including corporate executives and board members, significant shareholders, politicians, and other prominent figures. Due to their insider status, these individuals are required to disclose their stock trades with the Securities and Exchange Commission or other regulatory groups.