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The Rivian R1S. Pension giant Calpers bought more Rivian shares in the second quarter.
Courtesy of Rivian
America’s largest public pension has increased bets in electric-vehicle makers.
California Public Employees’ Retirement System bought more shares of
Rivian
Automotive (ticker: RIVN) and
Li Auto
(LI), and reduced positions in videoconferencing firm
Zoom Video Communications
(ZM) and satellite-radio broadcaster
Sirius XM Holdings
(SIRI) in the second quarter.
Calpers, as the pension is known, reported the stock trades, among others, in a form it filed with the Securities and Exchange Commission.
The pension declined to comment on the investment changes. As of Tuesday, it managed $467.32 billion in assets, making it the country’s largest public pension by assets.
Calpers bought 34,622 more Rivian shares to end the second quarter with 324,331 shares. The stock tumbled 75% in the year’s first half, compared with a 21% drop in the
S&P 500 index
.
Shares have surged 34% so far in the third quarter; the index has climbed 12%.
The stock soared in early July after Rivian disclosed brisk sales of its electric pickup truck.
Amazon.com
(AMZN), a Rivian investor, raised the public profile of the EV maker when it began using Rivian delivery vans. Earlier this month, the EV maker reported a wider-than-expected second-quarter loss, but maintained its full-year production estimates.
Beijing-based Li Auto disappointed with delivery guidance this month, but its second-quarter numbers were better than expected. We’ve noted that Li Auto is aiming to take Chinese market share from
Tesla
(TSLA). In June, Li Auto announced it would sell up to $2 billion in new stock, pressuring the company’s American depositary receipts.
The pension bought 152,127 more Li Auto ADRs to end the second quarter with 958,705 ADRs. The ADRs rose 19% in the first half of the year, and so far in the third quarter ADRs are down 22%.
Calpers sold 152,219 Zoom shares to lower its investment to 821,014 shares. Zoom stock tumbled 41% in the first half of the year; so far in the third quarter, shares are down 8%.
Zoom shares remain in the red so far this year, but they did well during the depths of the pandemic when videoconferencing from home became a norm. One observer thinks
Microsoft
’s
(MSFT) office-collaboration software will hamper Zoom’s growth. Nonetheless, analysts still see sales growth, and even recession-resistant earnings. The company’s fiscal first quarter, reported in May, topped expectations. It reports the fiscal second quarter on Monday, after the market closes.
Sirius reported a mixed second quarter at the end of July, with earnings short of Wall Street’s estimates. At least one observer remains cautious on the ad outlook for its Pandora streaming radio business. Conan O’Brien sold his podcast and media company to Sirius in May.
Calpers sold 1.1 million Sirius shares to end the second quarter with 6.2 million shares. The stock slipped 3.5% in the year’s first half; so far in the third quarter, shares are up 4.4%.
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 edward.lin@barrons.com and follow @BarronsEdLin.
