Calpers reduces 'magnificent seven' holdings as neocloud stocks slide
Summary
CalPERS, which manages more than $600 billion, cut its combined direct holdings in the Magnificent Seven technology stocks by 26% in the first half, according to Financial Times calculations based on filings. Deputy CIO Anton Orlich said public equity valuations appeared expensive and the tech giants could underperform other investments. The pension fund is increasing private-equity exposure to diversify beyond a small group of market leaders. The shift comes amid concerns about the sustainability of AI investment and financing for companies tied to AI data centers; several neocloud stocks also fell in pre-market trading.
