A Giant Pension Bought Up AT&T, Facebook, GE, and Netflix Stock -- Barrons.com
6:59 am ET March 1, 2020 (Dow Jones) Print
By Ed Lin
South Korea's National Pension Service Investment Management made some big bets on American blue chips and tech giants in the fourth quarter.
The manager, which handles the country's $600 billion National Pension Fund, materially increased positions in AT&T (ticker: T), Facebook (FB), General Electric (GE), and Netflix stock (NFLX). The NPSIM disclosed the trades in a form it filed with the Securities and Exchange Commission. The pension's U.S.-traded equity investments totaled $36.5 billion at the end of 2019.
The NPSIM didn't respond to a request for comment on the transactions.
AT&T stock surged 36.9% in 2019, topping the 28.9% rise in the S&P 500 index, a proxy for the wider market. Earnings were strong last year, and some observers saw more in store for AT&T stock with the rollout of 5G wireless services and HBO Max.
In 2020, however, AT&T stock has slid 9.9% through Friday's close, compared with an 8.6% drop in the index. An earnings report in late January disappointed investors, and at least one analyst has moved to the sidelines on AT&T stock.
NPSIM bought 855,000 additional AT&T shares in the fourth quarter to end the year with 8.83 million shares.
The manager also bought 358,000 more Facebook shares, lifting its investment to 2.86 million shares to end 2019.
Facebook stock soared 56.6% in 2019, boosted by strong earnings and upbeat analyst commentary. But this year the social network's shares have slipped 6.2%. Growth may be slowing, but at least one observer remains bullish.
GE stock has slipped 2.5% year to date, but analysts have been upbeat, and one of the company's biggest critics removed a Sell rating. Shares of the conglomerate had surged 53.3% in 2019.
NPSIM bought 1.06 million more GE shares in the fourth quarter, ending the period with 10.4 million shares.
Netflix stock is having a strong 2020, surging 14% after a 21% rise in 2019. The streaming giant may have the latitude to raise subscription prices, and the resignation of Disney (DIS) CEO Robert Iger so soon after the launch of the Disney+ streaming service may indicate that it isn't the Netflix-killer that many had feared.
The manager bought 68,900 additional Netflix shares in the fourth quarter, raising the investment to 542,400 shares.
Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
(END) Dow Jones Newswires
March 01, 2020 06:59 ET (11:59 GMT)
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