The asset manager of Norway’s largest bank just made big changes in its U.S.-traded stock portfolio.
DNB Asset Management nearly tripled its holdings in videogame maker
Activision Blizzard
(ticker: ATVI), doubled an investment in electric-vehicle maker
Lucid
Group (LCID), and slashed positions in legacy auto makers
General Motors
(GM) and
Ford
Motor (F) in the second quarter. DNB disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission.
DNB says it doesn’t comment on “tactical changes in regards to single stocks.” It managed assets of $86 billion as of the fourth quarter of 2021.
The investment manager bought 890,351 more shares of Activision to lift its holdings to 1.36 million shares as of the end of June. Activision stock rose 10.1% in the first six months of 2023, compared with a 16% rise in the
S&P 500 index.
So far in July, shares have gained 9.5% while the index is up 1.9%.
Activision stock got a boost earlier this month after a federal judge ruled
Microsoft
(MSFT) can close its long-brewing acquisition of the publisher of the “Call of Duty” franchise. A U.K. regulator had blocked the deal earlier this year, but the agency says it is ready to consider a new proposal. The companies have extended a deadline for the merger to Oct. 18.
Warren Buffett’s
Berkshire Hathaway (
BRKb
) in the past week disclosed that it slashed its stake in Activision stock.
Berkshire Hathaway had cut its GM stake by 20% in the first quarter, but DNB went farther than that in the second quarter, selling a third of its GM stake to end June with 219,629 shares. DNB also cut a third from its Ford holdings to 660,684 shares in the second quarter.
GM and Ford stock rose 15% and 30%, respectively, in the first half of 2023. Since then, they have gained 2% and dropped 7%, respectively. Both auto makers began negotiating with the United Auto Workers earlier this month. GM announced earlier in July a longer range for its 2024 Hummer electric pickup, and analysts have lifted earnings estimates in recent weeks. Ford just cut the price of its F-150 Lightning all-electric pickup truck after
Tesla
(TSLA) announced it began production of the Cybertruck.
DNB slightly raised its Tesla stake 3.3% to 721,810 shares in the second quarter, but the asset manager dramatically increased its investment in another electric-vehicle stock. The firm more than doubled its Lucid stake to 133,684 shares in the second quarter.
Lucid stock added about 1% in the first half of 2023, and shares are flat so far in July. Lucid shares, and those of some other EV start-ups, have gotten a boost from the late June bankruptcy of
Lordstown Motors,
whose shares now trade over the counter. Enthusiasm for Lucid stock was tempered by disappointing second-quarter production.
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 [email protected] and follow @BarronsEdLin.
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