Ed Lin
A large corporate pension recently made big changes in some of its largest U.S.-traded investments.
Lockheed Martin Investment Management Company dramatically increased stakes in tech names Nvidia, Apple, and Broadcom, and slashed an investment in retailer Walmart in the fourth quarter. LMIMCo, as the division of the aerospace company is known, disclosed the stock trades,
among others, in a form it filed with the Securities and Exchange Commission.
"In general, it is LMIMCo's practice not to comment on its investment decisions," Lockheed wrote in an email. As of Dec. 31, the pension managed $2.5 billion of U.S.-traded stock.
Nvidia stock soared 171% in 2024, compared with a 23% rise in the S&P 500 index. So far in 2025, shares are down 11%, while the index is up 3%.
Nvidia shares were propelled upward last year by investors' enthusiasm about artificial intelligence; the company's chips are seen as key to AI advancements. Last Monday, however, the Chinese start-up DeepSeek pummeled the tech sector and Nvidia stock in particular with an AI app that appeared to have been developed at a lower cost, using less advanced chips, than U.S. models.
LMIMCo bought 233,920 more Nvidia shares in the fourth quarter to lift its stake to 1.3 million shares.
The pension bought 165,040 additional Apple shares to end the fourth quarter with 1.1 million shares.
Apple beat fiscal-first-quarter earnings estimates last week. In the face of the DeepSeek turmoil, Apple stock was a haven, even closing with a gain that Monday. While that could be because of the way that the company has centered its AI efforts on its iPhones, there is also worry among investors about demand for the devices.
Apple stock rose 30% in 2024, and so far this year, shares are down 6%.
Broadcom stock surged 108% in 2024, but so far in 2025, shares are down 5%.
Broadcom has also benefited from market interest in AI technology, helping to boost the company's market value past $1 trillion for the first time. Shares also took on water as DeepSeek raised doubt about spending on AI infrastructure on Monday.
LMIMCo bought 60,280 more Broadcom shares in the fourth quarter to lift its stake to 173,340 shares.
The pension sold 112,770 Walmart shares to slash its investment to 49,860 shares at the end of the quarter.
Barron's noted in January that a strong economy will benefit retailers, but Walmart stock isn't cheap. The descendants of founder Sam Walton, have expanded voting rights to younger members of the family.
Walmart shares soared 72% in 2024. So far this year, they are up 9%.
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.
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February 02, 2025 03:00 ET (08:00 GMT)
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