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Asset Allocation

New York Common Earmarked More Than $1.1 Billion to Alts in December

The pension fund also terminated a nearly $500 million account with Rockefeller Asset Management.
By Michael Katz


The New York State Common Retirement Fund earmarked more than $1.1 billion for alternative investments during December 2022, most of which was within its private equity portfolio, according to the pension fund’s monthly transaction report.

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The pension fund committed $350 million within its private equity portfolio to the Apollo Investment Fund X, managed by Apollo Global Management Inc. The fund seeks investments in a wide range of sectors, primarily in North America, including business services; chemicals; consumer and health-care services; consumer and retail; financial services; leisure; manufacturing; industrial and resources; and telecommunications, media and technology.

Another $300 million was committed within the private equity portfolio to the Hellman & Friedman Capital Partners XI fund, which will focus on the technology, consumer services and retail, health care, financial services, and content and business services sectors in North America and Europe.

Within its opportunistic absolute return strategies, New York Common is investing $300 million in the KSL Capital Partners VI fund. The fund will focus on investments in the travel and leisure industries. New York Common also set aside $150 million within its credit portfolio for the KSL Capital Partners Credit Opportunities Fund IV, which makes credit investments that focus on real estate, travel and leisure companies with high income and advance rates below current market values and replacement costs.

As part of its emerging manager program, which invests in newer, smaller and diverse investment management firms, the NYSCRF has allotted up to $15 million to NorthBridge Partners’ NB Partners Fund IV fund, which will acquire or develop small and midsize infill logistics assets. New York Common will also invest up to $15 million in the Arc Urban Investors fund, which is looking to acquire repriced retail and commercial properties to convert to mixed-use. It also seeks to acquire or develop value-priced apartments.

Also within its emerging manager program, the pension fund will invest up to $5.2 million in two funds from Sundance Bay that will focus on originating high-yielding senior debt and subordinate debt.

Within its real estate portfolio, the pension fund has invested $72.7 million in a portfolio of five medical office buildings in or near Dallas; Atlanta; New Haven, Connecticut; Reading Pennsylvania; and Lancaster, Pennsylvania, also committing slightly less than $1.4 million in a 72-unit affordable housing property in Glens Falls, New York.

Additionally, the NYSCRF said it has terminated its $483.6 million account with Rockefeller Asset Management within its public equity portfolio and allocated that amount to cash.

Related Stories:

New York Common Retirement Fund Invests $1.3 Billion in September

NY State Pension Allocates Over $1 Billion to Alts in July

NY Common to Review Net-Zero Readiness of Oil and Gas Firms

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Home > News > Risk > Why Meta’s Stock Surges, Despite Skunky Earnings—A Harbinger for Tech?
Risk

Why Meta’s Stock Surges, Despite Skunky Earnings—A Harbinger for Tech?

Slammed in 2022, the Facebook parent and its Big Tech kin see their shares dazzle now, even if their financial performances haven’t.  

By Larry Light

A cascade of bad news made little difference to Meta Platforms. Its stock price rocketed 23% Thursday after what would ordinarily have been a disquieting fourth quarter earnings report. Turns out that investors in 2023 thus far are willing to shrug off uninspiring financial results among the battered tech giants.

Among that crew, Meta is an extreme case of tech bad news. In Thursday’s earnings call, CEO Mark Zuckerberg hardly cut back on his commitment to the multiverse, a strategy that many view as iffy. Costs swelled by 22% in the quarter, mainly due to the new strategy. Meta’s Q4 2022 results saw profits tumble by 55% and revenue by 4%. And the company took a $4.2 billion restructuring charge.

But Zuckerberg’s remarks during the earnings call signaled to Wall Street that there is hope. And investors bought it. During his talk, the CEO promised “a year of efficiency” ahead. He has trimmed 13% of Meta’s workforce and pledged to scrap new endeavors that were not working out—the metaverse evidently not among them.

He touted the company’s advances in artificial intelligence, which he said would power future earnings. And as a sweetener, Zuckerberg boosted the Meta stock buyback program this year to $40 billion, up from $28 billion in 2022.

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A host of Wall Street firms responded by increasing their target price for Meta. Guggenheim, for instance, raised its target to $210 from $130, with a buy rating. Meta closed at just below $189 Thursday. Guggenheim analysts said in a note that they had “greater confidence that the company’s more disciplined investment approach will yield more sustainable cash flow growth than the prior plan.”

Meta’s good day in the stock market was mirrored by other Big Tech names that also shared Q4 results that were not wonderful. Apple missed earnings projections as iPhone sales fell short, but its stock rose 3.7% for the day. Amazon logged its worst loss on record, yet increased 7.8%. Google-parent Alphabet had small misses on earnings and revenue, yet jumped 7.3%.

Overall, the enthusiasm for these names drove the tech-heavy Nasdaq up 3.25% on Thursday, while the broader S&P 500 index was up 1.47% and the Dow – with few technology names – was off 0.11%.

This comes against a recent backdrop of friendlier investor treatment of technology names overall. Meta, Apple, Amazon and Alphabet are all up this year, following deep slides in 2022.

The Invesco QQQ Trust, an exchange-traded fund that tracks the largest technology companies, fell almost 33% in 2022, a painful reversal after a long upward trajectory. This year, the ETF is up 25%. Wedbush Securities analyst Daniel Ives, who said he believes that tech stocks’ poor showing last year was overdone, told fintech firm TipRanks’ newsletter that they will rise another 20% in 2023.

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