Al Gore’s Firm Dumps Intel Stock. It Also Sold Shopify and Microsoft Stock.


Former U.S. vice president Al Gore. His investment firm sold all of its Intel stock in the third quarter.


Joseph Eid/AFP/Getty Images

The investment firm co-founded by former vice president Al Gore recently made some big trades in the largest holdings of its portfolio.

In the third quarter, Generation Investment Management sold all its
Intel
(ticker:
INTC
) stock, halved the investment in e-commerce firm
Shopify
(SHOP), trimmed the stake in software giant
Microsoft
(MSFT), and bought more shares of cloud firm
Twilio
(TWLO). Generation disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission.

Generation, which focuses on sustainable investment, declined to comment. Overall, its assets under management totaled more than $36 billion in May.

The firm’s largest public fund under its management, Lombard Odier Funds-Generation Global, has had a rough go as of late against its benchmark, the MSCI World Index. The fund was down 33% for the year to date through Oct. 31, 20% worse than the benchmark. But its long-term performance crushes the index, by a cumulative 36% for the five-year period, and by 135% for the 10-year period.

Generation owned 14.8 million Intel shares at the end of the second quarter, and sold them all in the third. Intel stock dropped 50% in the first nine months of the year, compared with a 25% fall in the
S&P 500 index,
of which it is a component. So far in the fourth quarter, shares are up 16% compared with an 11% rise in the index.

Intel vowed to make a “meaningful number” of layoffs after the latest of a string of earnings and guidance disappointments. CEO Pat Gelsinger recently bought stock on the open market, along with shares of
Mobileye Global
(MBLY), which spun off from Intel near the end of October. Intel’s struggles are magnified by the end of outsize demand it saw during the depth of the pandemic for its chips in servers and PCs.

Shopify is another company that is coming off a hot pandemic streak, and has announced job cuts. The loss in its latest quarter, however, was narrower than expected. Shopify CEO Tobi Lutke bought up shares on the open market.

Generation sold 3.7 million Shopify shares in the third quarter to lower its stake to 3.8 million shares. Shopify stock tumbled 80% in the first nine months of the year, and so far in the fourth quarter shares have rocketed 36%.

The firm also sold 387,306 Microsoft shares to lower its investment to 3.9 million shares. Microsoft stock dropped 31% in the first nine months of the year, and so far in the fourth quarter shares are up 3.6%.

Microsoft announced in January that it had agreed to acquire game publisher
Activision Blizzard
(ATVI), a transaction expected to close in fiscal 2023, which ends June 30, 2023. Slowing cloud growth in Microsoft’s latest quarter sent a chill through the entire sector.

Twilio is one of the cloud companies caught up in the gusts that Microsoft’s disappointment sent. Twilio has recently provided disappointing guidance, as customers cut back. Shares recently slid to a multiyear low.

Generation bought 603,188 more Twilio shares to end the third quarter with 5 million shares. Twilio stock cratered 74% in the first nine months of the year, and so far in the fourth quarter shares are down 29%.

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.





Source link

We will be happy to hear your thoughts

Leave a reply

Newsline.world
Logo