The manager of Wisconsin’s pension bought up Apple stock in the first quarter. The pension is one of the largest in the U.S. and by some measures one of the best.
Photograph by Aleksander VladThe State of Wisconsin Investment Board made some big changes in some of its largest stock investments in the first quarter, a period marked with volatility brought on by the coronavirus pandemic.
SWIB, as the board is known, manages state trust funds that at the end of 2019 totaled more than $128 billion, 91% of which falls under the Wisconsin Retirement System.
SWIB sold Apple (ticker: AAPL), Microsoft (MSFT) and Intel (INTC) in the first quarter, and doubled its stake in ride-hailing firm Uber Technologies (UBER). It disclosed the trades in a form it filed with the Securities and Exchange Commission.
The Wisconsin Retirement System is the eighth-largest U.S. public pension fund and, by some measures, among the best. A study by the Pew Charitable Trusts using 2017 data found that Wisconsin had the best-funded state pension, with a funded ratio of 102.7%—meaning it had $1.03 in assets for every $1 in liabilities. The average state was only 69.1% funded, and only seven other states had a funded ratio over 90%. At the end of 2018, the pension remained fully funded.
SWIB didn’t respond to a request for comment on its stock trades.
Apple stock slid 13.4% in the first quarter. In the second quarter it has wiped out that loss, with a 22.0% rally. In comparison, the S&P 500 index, a measure of the broader market, has gained 13.4% in the second quarter.
We have noted that the iPhone maker’s App Store saw business surge in April while many parts of the world were locked down to fight the spread of Covid-19.
SWIB sold 627,969 Apple shares in the first quarter, lowering its investment to 3.8 million shares.
The board also sold 1.4 million Microsoft shares to end the first quarter with 6.9 million shares of the software giant.
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Microsoft had a flat first quarter, but the shares have rallied 17.1% in the second. Our latest Big Money Poll found that among individual stocks, Microsoft was one of the most popular picks. Analysts have noted the company’s strong cloud business.
Intel stock slipped 9.6% in the first quarter, but has managed a gain of 10.3% so far in the second. The chip giant earlier this month agreed to pay $900 million for transportation-technology company Moovit, which owns an app that helps users plot transportation routes.
SWIB sold 772,746 Intel shares to lower its investment to 2.8 million shares at the end of the first quarter.
The board nearly doubled its investment in Uber by buying 737,558 more shares to end March with 1.6 million shares.
Uber stock slipped 6.1% in the first quarter and has risen 17.4% in the second, in the face of being sued by the state of California and company layoffs. A relatively upbeat outlook has lifted Uber stock.
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.
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