Ohio's OPERS Boosts Palantir Stake by 23% Amid 80% Stock Surge

Ohio Public Employees Retirement System (OPERS), the largest public pension fund in Ohio, has made significant adjustments to its investment portfolio during the second quarter of 2025. The fund increased its stake in Palantir Technologies by acquiring an additional 171,441 shares, bringing its total holdings to 908,712 shares. This move comes after Palantir's stock surged by 80% in the first half of 2025, significantly outperforming the broader market, which saw the S&P 500 index rise by 5.5% over the same period. The momentum for Palantir's stock has continued into the third quarter, with shares up by 13% compared to a modest 1.5% increase in the S&P 500.

Palantir's stock surge can be attributed to several factors, including its addition to the S&P 500 index in September 2024. This inclusion automatically triggered purchases by index-tracking funds, providing a significant boost to the company's share price. Additionally, Palantir has consistently delivered strong earnings, further fueling investor confidence. The company's stock reached an all-time high of $155.68 on the last trading day of the second quarter, reflecting its robust performance.

In addition to its increased stake in Palantir, OPERS also added 21,499 shares of MicroStrategy, bringing its total holdings to 101,880 shares. MicroStrategy, which has rebranded itself as Strategy, has made a significant bet on Bitcoin, becoming the largest corporate holder of the cryptocurrency. The company has raised over $3 billion through the sale of preferred shares to acquire more Bitcoin. These preferred shares carry interest rates as high as 11.5%, which has raised concerns among some investors about the sustainability of the strategy. Despite these concerns, Strategy's stock has risen by 40% in the first half of 2025, with an additional 4.7% gain in the third quarter.

OPERS' decision to increase its holdings in Palantir and MicroStrategy reflects a strategic shift towards high-volatility tech stocks, while simultaneously reducing its exposure to the ride-hailing sector. The fund sold 58,881 shares of Lyft, reducing its total stake to 166,628 shares. This move comes despite Lyft's stock rising by 22% in the first half of the year. However, Lyft's performance has since faltered, with shares down by 6.3% in the third quarter. The company's mixed earnings report in February and a lackluster share repurchase plan in May may have contributed to OPERS' decision to reduce its holdings. Analysts from TD Cowen upgraded Lyft's stock to Buy in June, citing potential benefits from autonomous vehicle competition, but this did not sway OPERS' decision.

OPERS' actions highlight a broader trend among institutional investors, who are increasingly looking to capitalize on the growth potential of high-volatility tech stocks. The fund's significant increase in its Palantir and MicroStrategy holdings, coupled with its reduction in Lyft, demonstrates a strategic reallocation of assets in response to market dynamics and company performance. As the largest public pension fund in Ohio, OPERS' investment decisions have a significant impact on the broader market and serve as a bellwether for institutional investment trends.