Major Investment Changes Revealed by AustralianSuper

AustralianSuper, one of the largest pensions globally, recently announced significant investment changes in its top stock holdings. The pension made notable adjustments in its positions with Apple (AAPL) and Microsoft (MSFT), while also increasing its shares in Tesla (TSLA) and initiating a position in chip provider Nvidia (NVDA) during the second quarter. These stock trades were disclosed by AustralianSuper in a filing with the Securities and Exchange Commission.

Regarding these investment changes, AustralianSuper decided not to provide any comments. As of June 30, 2022, the pension managed an impressive $170 billion in assets, positioning itself as Australia's largest pension fund and the world's 20th largest.

While Apple stock experienced a remarkable 49% surge in the first half of 2023, outperforming the S&P 500 index's 16% increase, its shares have faced a downturn of 6% during the third quarter compared to the index's steady performance.

It is worth noting that Warren Buffett has considered an investment in Apple stock as one of his greatest successes. One of the reasons he initially invested was because his grandchildren were captivated by their iPhones when they visited an Omaha Dairy Queen, which is owned by Buffett's Berkshire Hathaway (BRKb).

Although Apple's fiscal-third-quarter report exhibited mixed results with earnings surpassing expectations while falling short on the top line, CEO Tim Cook mentioned the company's continuous observation of an "uneven macroeconomic environment."

Furthermore, AustralianSuper significantly increased its holdings of Tesla stock by purchasing an additional 138,573 shares, resulting in a total of 159,336 shares by the end of June.

Tesla had a strong second-quarter performance with earnings surpassing estimates. However, the stock experienced a decline likely due to investor disappointment regarding the production outlook. An interesting move made by Tesla was the introduction of car loans with terms extending up to 84 months. Additionally, the company celebrated the completion of its first Cybertruck pickup.

During the first half of 2023, Tesla stock more than doubled, surging by 113%. However, in the third quarter, the shares experienced a 3% decline.

Nvidia stock proved to be impressive as well, nearly tripling in the first half of 2023 by skyrocketing 189%, thus compensating for the 50% drop in 2022. In the third quarter, Nvidia shares went up by 6%.

These investment changes by AustralianSuper not only reflect their adaptability in shifting stock positions but also underscore their active engagement in a diverse range of industries.

Nvidia's Positive Performance

Nvidia, known for their essential contribution to Tesla EVs through their chips, has been witnessing a surge in interest in the field of artificial intelligence. In fact, the company's latest quarterly report in May was highly optimistic and resulted in a significant increase in its share prices.

AustralianSuper's Investment

During the second quarter, AustralianSuper purchased 226,955 shares of Nvidia. It is worth noting that this pension fund did not previously possess any shares of the company at the end of the first quarter.

Microsoft Stock Adjustment

In order to reduce its holdings, the pension fund decided to sell 1.5 million shares of Microsoft. As a result, they now hold 2.8 million shares of the company as of the end of the second quarter.

Microsoft's Mixed Performance

Microsoft experienced a remarkable 42% surge in stock value during the first half of the year, successfully recovering from a 29% drop in 2022. However, in the third quarter, shares have dipped by 4%.

Latest Quarter Highlights

Although Microsoft's latest quarterly report, released in late July, exceeded analysts' expectations, it revealed some weaknesses in the company's PC business. Furthermore, during that same month, Microsoft faced criticism and allegations of negligent security due to a hacking incident that facilitated spying on top Biden administration officials by China. In response, Microsoft emphasized its collaboration with government agencies and its commitment to sharing information regarding the hack.

Antitrust Probe in Europe

In addition to these challenges, Microsoft is currently under investigation for potential antitrust violations in Europe. Regulators are examining whether the company is exploiting its dominant position by bundling its Teams videoconferencing app with its popular Office productivity software. Microsoft has stated its willingness to cooperate with the investigation.