CalPERS Dumps 5.1M Apple Shares Amid Tariff Woes, Boosts Meta, AMD, McDonald's Holdings

The California Public Employees' Retirement System (CalPERS), the largest pension fund in the United States, has made substantial changes to its investment portfolio. In the first quarter, CalPERS sold 5.1 million shares of Apple, reducing its holdings to 34.7 million shares. This move comes as Apple's stock performance has been affected by tariffs, with the company's shares declining by 11% in the first quarter and a further 12% in the second quarter.

Simultaneously, CalPERS increased its holdings in Meta, AMD, and McDonald's. The fund added 579,150 shares of Meta, bringing its total holdings to 5.5 million shares. Despite a slight decline of 1.6% in Meta's stock price during the first quarter, the company's shares have since risen by 8.8% in the second quarter. Meta has been actively addressing issues related to fraud on its platform, demonstrating its commitment to regulatory compliance and user experience.

CalPERS also increased its stake in AMD by 325,180 shares, bringing its total holdings to 3.3 million shares. Although AMD's stock price fell by 15% in the first quarter, it has since rebounded by 7.4%. AMD's recent expansion of its stock buyback program and its agreement to establish an AI computing center network in Saudi Arabia indicate its strategic focus on the AI computing sector.

Additionally, CalPERS purchased 494,290 shares of McDonald's, increasing its holdings to 3.5 million shares. McDonald's stock price rose by 7.8% in the first quarter and has remained relatively stable in the second quarter, reflecting its resilience in a volatile market. The fast-food chain reported mixed first-quarter results, with a decrease in U.S. customer traffic but a boost in sales from promotions related to the "My World" movie.

CalPERS' decision to sell Apple shares and buy into Meta, AMD, and McDonald's reflects a strategic shift in its investment approach. The fund's move to reduce its exposure to Apple, which has been a significant contributor to its portfolio, suggests a cautious stance towards the tech giant amid ongoing trade tensions and regulatory challenges. By diversifying its portfolio and increasing its holdings in different sectors, CalPERS aims to capitalize on growth opportunities and manage risks associated with individual companies and sectors.