Wellcome Trust slashed positions in Apple and Microsoft stock in the second quarter. It also initiated a position in Abbott Laboratories, and bought more Nike stock.
GREG BAKER/AFP via Getty ImagesWellcome Trust made some notable changes in its stock portfolio in the second quarter. One of the largest charitable organizations in the world by assets, the London-based trust was also one of the earliest to warn investors of the impact the coronavirus would have on global health and financial markets.
Wellcome lowered positions in Apple (ticker: AAPL) and Microsoft stock (MSFT), and initiated a position in Abbott Laboratories (ABT) in the second quarter. The trust also greatly increased its investment in Nike stock (NKE). Wellcome disclosed the trades, among others, in a form it filed with the Securities and Exchange Commission.
The trust, whose investment portfolio now totals $33.7 billion, declined to comment on its stock trades.
Wellcome sold 700,000 Apple shares in the second quarter, cutting its investment in the iPhone maker to 1.3 million shares.
Apple stock surged 43.5% in the quarter, more than doubling the 20% gain in the S&P 500 index, a broad measure of the market. In July, through Friday’s close, Apple stock has gained 5.6%, compared with a 4.0% rise in the index.
One analyst recently noted the rise of Apple stock, along with other big tech shares, into record territory, and saw “a similar trajectory as previous bubbles.” Rupal J. Bhansali, chief investment officer and portfolio manager, International & Global Equities, Ariel Investments, said at our latest Roundtable, “We don’t like Apple.” She said that because Apple is a product company. If the next launch doesn’t do well, “that’s problematic as earnings prospects become binary rather than bankable.”
Wellcome sold 600,000 Microsoft shares, cutting its stake to 2.9 million shares at June 30.
Microsoft stock surged 29% in the second quarter, but had been flat since.
Shares of Microsoft, like Apple’s, have hit all-time highs. The software giant recently stumbled in one area. The company shut down Mixer, a videogame streaming service, because it wasn’t able to grow Mixer fast or large enough to serve the streamers it had hired to generate content.
Wellcome bought 1.95 million Abbott shares in the second quarter. The trust hadn’t owned any at the end of the first quarter.
Abbott stock rose 15.9% in the second quarter, and in July it has gained 8.6%.
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The medical-device firm defended its Covid-19 test in May after the Food and Drug Administration warned it could return false negatives. Our Big Money Poll earlier this year found that Abbott stock was still favored by many investors.
Wellcome raised its investment in Nike by a factor of six, buying 1.8 million additional shares in the second quarter to end the period with 2.1 million shares.
Nike stock still hasn’t recovered from an 18.3% plunge in the first quarter, and shares of the apparel giant remain 5% in the red for the year.
A surprise loss in the fiscal fourth quarter, reported in June, sent shares sliding, although bullish analysts remained optimistic. Why still be upbeat on Nike stock? At least one analyst thinks a renewed focus on health and wellness in the face of the pandemic will give Nike a boost.
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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