GameStop, Palantir, Alibaba — Stocks Largest US Pension Fund Sold In Q1. Here's What It Bought Instead

The largest U.S. pension fund by assets sold nearly all its investment in Chinese e-commerce giant Alibaba Group Holding Limited BABA and also cut its stake in videogame retailer GameStop Corp. GME in the recent first quarter, while increasing its holding in Zoom Video Communications Inc. ZM.

What Happened: California Public Employees’ Retirement System, also known as Calpers, announced the investment changes in a regulatory filing.

Calpers drastically trimmed its stake in Alibaba to 251,815 American depositary receipts (ADR) in the first quarter from 4.36 million ADRs at the end of the preceding fourth quarter of last year. Alibaba is facing increased regulatory scrutiny in China.

The pension fund also cut its stake by more than half in the “meme” stock GameStop, to 57,700 shares from 134,913 shares and in Palantir Technologies Inc. PLTR to 547,154 shares from 1.27 million shares at the end of the previous quarter.

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Calpers initiated a stake in Chinese electric vehicle maker Xpeng Inc. XPEV by acquiring 259,241 shares during the first quarter.

Calpers increased its stake in video conferencing service Zoom Video Communications, which benefited amid the pandemic-induced lockdowns last year, to 930,773 shares from 702,737 shares at the end of December 2020.

See also: How To Buy Alibaba Stock

Why It Matters: Calpers’ investment changes assume significance as it is the largest U.S. pension fund by assets.

Calpers pension fund serves more than 2 million members in the CalPERS retirement system and administers benefits for more than 1.5 million members as well as their families in the pension fund’s health program.

Calpers’ total fund market value currently stands at $461.47 billion.

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