CalPERS Responds to Financial Headwinds with Major Portfolio Overhaul

20 May 2025

Photo: max whittaker/Reuters

In the first quarter of 2025, the California Public Employees' Retirement System (CalPERS), the largest public pension fund in the United States, made significant adjustments to its investment portfolio. Managing over $540 billion in assets, CalPERS reduced its holdings in Apple Inc. and increased its positions in Meta Platforms Inc., Advanced Micro Devices Inc. (AMD), and McDonald's Corp.

Strategic Portfolio Adjustments

Apple Inc. (AAPL): CalPERS sold approximately 5.1 million shares of Apple, decreasing its stake to 34.7 million shares by the end of Q1 2025. This move came amid Apple's underperformance in the market and potential challenges related to U.S. tariffs on products manufactured abroad.

Meta Platforms Inc. (META): The pension fund increased its holdings in Meta by 579,150 shares, bringing the total to 5.5 million shares. Meta's resilient digital advertising business and efforts to address platform scams contributed to investor confidence.

Advanced Micro Devices Inc. (AMD): CalPERS added 325,180 shares of AMD, totaling 3.3 million shares. AMD's strong earnings, raised financial guidance, and an expanded stock-repurchase program signaled robust growth prospects.

McDonald's Corp. (MCD): The fund acquired an additional 494,290 shares of McDonald's, increasing its holdings to 3.5 million shares. Despite a decline in U.S. foot traffic, McDonald's successful promotions, such as the "Minecraft Movie" Happy Meal, bolstered sales.

CalPERS emphasized that its investment decisions are guided by systematic and quantitative strategies, rather than short-term market events. The adjustments reflect a focus on long-term value and portfolio optimization.

These portfolio changes by a major institutional investor like CalPERS can influence market perceptions and underscore shifting confidence in specific sectors. Investors may interpret such moves as signals of underlying trends in technology, consumer behavior, and global economic conditions.

As CalPERS continues to navigate the evolving financial landscape, its investment strategies offer insights into broader market dynamics and institutional priorities.