DNB Asset Management, the asset manager of Norway’s largest bank, recently announced major adjustments to its U.S.-traded stock portfolio. In the second quarter, DNB nearly tripled its holdings in videogame maker Activision Blizzard (ticker: ATVI), doubled its investment in electric-vehicle maker Lucid Group (LCID), and significantly reduced positions in legacy auto manufacturers General Motors (GM) and Ford Motor (F). The details of these stock trades were disclosed in a form filed with the Securities and Exchange Commission.
DNB, with $86 billion in assets under management as of the fourth quarter of 2021, chooses not to comment on specific changes made to individual stocks.
The investment manager increased its stake in Activision by acquiring an additional 890,351 shares, bringing its total holdings to 1.36 million shares as of the end of June. Activision stock has performed well, rising 10.1% in the first six months of 2023, although this is less than the 16% increase in the S&P 500 index during the same period. In July, Activision shares have already gained 9.5%, while the index has risen by 1.9%.
One key factor contributing to the recent boost in Activision stock was a federal judge’s ruling allowing Microsoft (MSFT) to proceed with its acquisition of the publisher behind the popular “Call of Duty” franchise. Initially blocked by a U.K. regulator earlier this year, the deal is now being reconsidered. The merger deadline has been extended to October 18. Notably, Warren Buffett’s Berkshire Hathaway (BRKb) recently disclosed a reduction in its stake in Activision stock.
DNB also made significant adjustments to its positions in General Motors and Ford Motor. In the first quarter, Berkshire Hathaway had reduced its GM stake by 20%, but DNB went further in the second quarter, selling off a third of its GM holdings, resulting in 219,629 shares remaining at the end of June. Similarly, DNB sold off a third of its Ford holdings, leaving it with 660,684 shares in the second quarter.
GM and Ford Stocks See Ups and Downs
GM and Ford stocks have experienced a series of fluctuations in the first half of 2023. GM saw a rise of 15%, while Ford soared by 30%. However, since then, both companies have seen some changes. GM’s stock has increased by 2%, while Ford’s has dropped by 7%.
Negotiations with United Auto Workers
Earlier this month, both GM and Ford began negotiations with the United Auto Workers. These discussions mark an important step for the auto manufacturers as they navigate their way through various labor agreements.
GM’s Exciting Announcement
GM made waves in July when it announced that its 2024 Hummer electric pickup would have an extended range. This news has had a significant impact on the company’s earnings estimates, resulting in analysts raising their expectations for GM in recent weeks.
Ford’s Strategic Move
Following Tesla’s announcement of the start of Cybertruck production, Ford decided to cut the price of its F-150 Lightning all-electric pickup truck. This strategic move aims to compete with Tesla in the electric vehicle market.
DNB’s Investment Strategy
DNB, an asset manager, slightly increased its stake in Tesla by 3.3% in the second quarter of the year. However, the company significantly boosted its investment in another electric-vehicle stock—Lucid. DNB more than doubled its stake in Lucid to 133,684 shares during the same period.
Lucid’s Steady Performance
Lucid’s stock had a modest increase of about 1% in the first half of 2023. However, shares have remained relatively flat throughout July. The recent bankruptcy of Lordstown Motors has indirectly benefited Lucid and some other EV start-ups, as their shares now trade over the counter. Nevertheless, disappointing second-quarter production figures have tempered enthusiasm for Lucid stock.
