The largest fund in New Jersey’s embattled state pension sold Apple and Intel stock in the third quarter, and bought up shares of electric-vehicle maker NIO and videoconferencing firm Zoom.
Greg Baker/AFP via Getty ImagesNew Jersey’s embattled state pension recently made major changes in its U.S.-traded stock investments.
State of New Jersey Common Pension Fund D, the pension’s largest fund by assets, sold Apple (ticker: AAPL) and Intel (INTC) stock in the third quarter, and bought NIO (NIO) and Zoom Video Communications (ZM) stock. The pension disclosed the stock trades in a form it filed with the Securities and Exchange Commission.
New Jersey’s Division of Investment, which manages the pension, didn’t respond to a request for comment on the stock trades. Pension Fund D had U.S.-traded assets of $25.2 billion as of Sept. 30; as of June 30, 2019, the pension had total assets of $80 billion.
The pension sold 634,567 Apple shares, on a post-split basis, in the quarter, ending September with 11.4 million shares of the iPhone maker.
Apple stock split 4-for-1 at the end of August. Apple’s fiscal-fourth-quarter earnings, reported Thursday, topped expectations, but shares slipped because iPhone revenue was lower than expected. The company also launched Apple One, a subscription bundle that includes Apple Music, TV+, Arcade, and cloud services.
Apple stock has surged 48% this year, including a 6% slip in October. By comparison, the S&P 500 index has eked out a 1.2% rise year to date, including a 2.8% drop in October.
The pension sold 161,651 Intel shares to end the quarter with 2.78 million shares of the chip giant.
Intel stock has lost about a quarter of its value year to date, including a 14% drop in October.
Intel reported strong third-quarter earnings in October, but shares tumbled after Wall Street saw that the company failed to address manufacturing issues and showed relative weakness in several crucial businesses. Earlier in the month, Intel agreed to sell its flash-memory business. CEO Bob Swan told us in September that Intel’s research-and-development money has been well spent, adding nearly $20 billion in annual revenue over the past five years.
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American depositary receipts of NIO, a Chinese maker of electric vehicles, have zoomed in 2020, and are now up 660% year to date, including a 44% surge in October alone.
NIO has been making strong deliveries of vehicles, which could become iconic, according to one analyst. J.P. Morganremains bullish on NIO ADRs even after the 2020 run-up.
New Jersey’s pension bought 148,996 more NIO ADRs in the third quarter, raising its investment to 523,748 ADRs.
The pension also bought 29,927 more Zoom shares in the period, raising its investment to 104,931 shares of the videoconferencing firm.
Zoom stock has lived up to its name this year, gaining nearly 600%, including a 2% slip in October.
Zoom said in October it would begin to collect communications taxes in New York, California, and other states. The company also recently unveiled Zoom Phone for users who want to connect without video. We’ve noted that with the proliferation of Zoom and similar technologies, TVs are being left behind.
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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