Look who sold off 42% of its 443,494 Apple shares last quarter

From Ed Lin’s “IBM’s Pension Slashed Stakes in Apple, Microsoft, and Tesla. It Bought GE.” posted Monday by Barron’s:

The IBM Retirement Fund slashed investments in Apple, Microsoft, and Tesla in the fourth quarter; all three stocks outperformed last year. The fund also initiated a position in General Electric stock, which underperformed. The pension disclosed the trades in a form it filed with the Securities and Exchange Commission.

The pension, which managed $805 million of U.S.-traded securities as of Dec. 31, didn’t respond to a request for comment.

IBM’s pension sold 186,471 Apple shares to end December with 257,023 shares of the maker of iPhones and Macs. The stock soared 34% in 2021, compared with a 27% rise in the S&P 500 index. So far this year, the stock has slipped 8.5%, while the index is 7.7% in the red.

Apple’s fiscal-fourth-quarter report disappointed as iPhone sales missed analysts’ expectations, and the top line also came up short. Earlier this month, before a market slump walloped tech stocks in particular, the company’s market capitalization topped $3 trillion—the first time for a publicly traded company. Analysts already see a path to a $4 trillion market cap.

My take: Selling high and buying low is not a bad strategy. Might be time to buy back some of those Apple shares.

4 Comments

  1. Fred Stein said:
    Very likely these trades are end of year asset re-allocation moves, which happen to have been very well times.

    Hopefully most of that type of trade, rebalancing, is in the past.

    At today’s prices, the case for AAPL as a safe haven becomes much stronger.

    1
    January 24, 2022
  2. Bart Yee said:
    I suppose they actually did well by locking profits and selling portions of AAPL, MSFT and TSLA by end of 2021 considering the run up before the tech selling so far in January. Developing dry powder.

    The GE stake they bought is really of little consequence since 18,199 shares at even $100/share would only be $1.82M, less than 0.23% of the entire portfolio.

    0
    January 24, 2022
  3. Robert Paul Leitao said:
    GE’s Larry Culp is a smart guy. There’s definitely value to be extracted as the company divides itself into three publicly traded enterprises. Still, Apple presents an exceptional long-term value especially at today’s lower price.

    0
    January 24, 2022
  4. Bart Yee said:
    I guess that GE investment isn’t paying off, GE just announced earnings, and revenue was guided lower than consensus. GE is off 6% in premarket.

    0
    January 25, 2022

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