Switzerland’s Central Bank Loaded Up On Apple, AMC, Tesla and Rivian Stocks

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by Ken Bryden  May 16, 2022

Apple stock is holding up better than the broader market.

Gabby Jones / Bloomberg

Switzerland’s central bank increased positions in some of its largest US-traded equity investments in the first quarter.

The Swiss National Bank bought stock of iPhone maker Apple (ticker: AAPL), movie-theater chain AMC Entertainment Holdings (AMC), and electric-vehicle makers Tesla (TSLA) and Rivian Automotive (RIVN).

Also read: Rivian Pares delivery target for 2022 citing supply problems

 The bank disclosed the trades in a form filed with the Securities and Exchange Commission. As of March 31, it owned $177 billion in US-traded securities. It declined to comment on the investment changes.

The Swiss National Bank bought 8.2 million more Apple shares to increase its investment to 71 million shares. Apple stock slipped 1.7% in the first quarter, compared to a 5% drop in the S&P 500 index. Shares are down 16% so far in the second quarter, while the index is down 11%.

Apple shares have gone on a losing streak, and the longest since the start of the pandemic. But the stock outperformed the broader market, and we noted that Apple’s performance could keep the S&P 500 from sliding into a bear market. Last week, the company announced the phase-out of the iPod device, a game-changing portable music player that Apple introduced 20 years ago.

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The decades-old movie franchises Spider-Man and Batman sent hordes of spectators to AMC theaters, prompting the company’s first-quarter report to exceed expectations. Off screen, the company introduced a different plotline earlier this year by taking a major stake in Hycroft Mining Holding (HYMC), which owns the Nevada gold and silver mine.

The bank bought 274,900 more AMC shares to increase its investment to 2.2 million shares. The stock slipped 9.4% in the first quarter; Shares are down 52% in the second so far.

Tesla stock is down 29% so far in the second quarter, after rising 2% in the first quarter. The stock has recently been cashed in by CEO Elon Musk from a large share sale, possibly to fund part of his purchase of the social-media platform Twitter (TWTR). Last week, Musk bragged that Tesla sales were growing faster than the Ford Motor (F) Model T.

Swiss National Bank bought 498,700 more Tesla shares to end the first quarter with 3.7 million shares.

The bank also bought 117,100 Rivian shares to increase its stake to 773,200. The stock fell 52% in the first quarter; In the second so far it has fallen 58%.

The decline has hurt the company’s big investors, including Ford and Amazon.com (AMZN). Rivian’s first-quarter earnings missed estimates last week, but investors were relieved that cash operating expenses declined from the fourth quarter, and that guidance remains in place. Shares rose and analysts were bullish on Rivian’s prospects. The mood was so positive, Rivian’s first recall announcement didn’t affect the shares.

The Inside Scoop features a regular baron covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Because of their insider positions, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Source:Switzerland’s Central Bank Loaded Up On Apple, AMC, Tesla and Rivian Stocks – Crast.net