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A huge pension initiated a large position in GE stock. It also bought up NIO, Apple, and Intel stock.
HUSSEIN FALEH/AFP/Getty Images
As 2020 was drawing to an end, a large Canadian pension drastically raised investments in publicly traded companies that both outperformed and underperformed the market.
The Healthcare of Ontario Pension Plan initiated a position in General Electric (ticker:
GE
) stock, and greatly increased holdings in NIO (NIO), Apple (AAPL), and
Intel
(INTC) stock in the fourth quarter. HOOPP, as the pension is known, disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission.
HOOPP, which manages assets of $75 billion, declined to comment on its investment changes.
The pension bought 8.5 million American depositary receipts of NIO in the fourth quarter; HOOPP had owned only 2,085 ADRs of the Chinese maker of electric vehicles at the end of the third.
NIO ADRs caught fire last year, surging more than 12 times in price, but they have slid 6.6% so far in 2021. In comparison, the
S&P 500 index,
a measure of the broader market, rose 16.3% in 2020, and has gained 5.0% year to date, setting records last week.
High-flying shares of EV makers have slipped this year, reaching a bear market before rebounding a bit. NIO investors were disappointed with sales in the company’s latest report, and volatility in the ADRs will likely continue.
HOOPP bought 7.7 million GE shares in the fourth quarter. It hadn’t owned any at Sept. 30.
GE stock slid 3.2% in 2020, but it is rising this year, up 16.5%.
GE investors are upbeat on CEO
Larry Culp’s
leadership, and improved cash flow. Assets sales have been met with approval. GE stock saw some days of weakness last week, but we think the selloff wasn’t justified.
Apple stock rallied 80.8% last year. So far in 2021, it is down 8.8%.
Apple supposed work on a car is fueling investor speculation. One observer sees an opportunity in augmented reality for the company. Apple is reportedly cutting production on the iPhone 12 Mini, the low end of its 5G smartphone lineup.
HOOPP bought 4.9 million more Apple shares in the quarter to end 2020 with 5.6 million shares.
The pension bought 5.2 million additional Intel shares in the fourth quarter, It owned only 5,151 shares of the chip giant at the end of the third.
Intel stock slid 16.8% in 2020, but it has soared 26.3% year to date.
In January, Intel announced that CEO
Bob Swan
was out, and shares rose. But later that month, Intel said it would continue to make chips in-house, a policy investors are cool on. In February, one analyst wondered if Intel might sell its Mobileye unit, a maker of automotive chips.
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
