Photograph of VCG / Getty Images
Two of the US public pension systems are characterized by the fact that they have enough assets to cover their future obligations: Wisconsin and South Dakota. Recent public reports released by Wisconsin highlight some daring stock market transactions.
Barron noted last week some transactions made in the first quarter by the South Dakota pension plan. This week, the Wisconsin State Investment Board, asset manager for a $ 104 billion Wisconsin Retirement System asset, announced what it was doing in the first quarter.
The Investment Office took positions in Canadian marijuana stocks
(Symbol: CRON) and US Depository Certificates
Alibaba Group Holding
(BABA), the Chinese Internet company. He doubled over
stock (Z) – a clear winning move – and reduces its holdings in
PG & E
The Investment Office has disclosed the transactions in a form filed with the Securities and Exchange Commission. The board declined to comment on the evolution of its equity investments.
The Cronos stock has been a loser since the end of the first quarter. After a skyrocketing 77.4% in the first quarter, stocks fell from 19.0% to Friday's close at $ 14.93. the
S & P 500
rose 0.9% in the second quarter.
Barron noted that finding a good pot was a problem for Cronos. The investment commission bought 127,900 Cronos shares in the first quarter. He did not have one at the end of 2018.
Alibaba ADRs also declined in April and May and are now posting a loss of 7.1% since the end of March. Trade tensions between the United States and China have hammered Chinese ADRs, although KeyBanc analyst Hans Chun recently argued that Alibaba has a positive potential.
The Wisconsin pension purchased 59,914 ADR Alibaba in the first quarter.
The purchase of Zillow was one of the smartest purchases of the investment, with an increase of 15.9% in April and May and a 10% increase in the first quarter. Solid earnings announced early May and the upgrade by an analyst this week have strengthened the title. The investment board doubled its holdings in Zillow to 1.82 million shares during the quarter.
PG & E shares continued to decline after losing a quarter of their value in the first quarter. Up until the second quarter, PG & E shares are down 4.4%.
The troubled electricity company suspended its dividend and appointed a new managing director. PG & E said this month that the SEC was reviewing its information and accounting for California's forest fire losses in recent years. This week, a California agency discovered that PG & E was responsible for the campfire. Wisconsin's investment was reduced by two-thirds by investing 180,041 PG & E shares at the end of March.
Write to Ed Lin at [email protected]