CalPERS cuts Magnificent Seven holdings by 26% and pivots toward private equity, FT reports (Oct 23)
What happened
CalPERS, the largest U.S. public pension fund with about $640 billion in assets, has cut the combined number of Magnificent Seven shares it directly holds — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and Tesla — by 26% in the first half of 2026, the Financial Times reported on October 23, citing its own calculations from regulatory filings. Deputy Chief Investment Officer Anton Orlich told the FT in an interview that the fund is shifting away from big U.S. tech stocks and increasing exposure to private equity and hundreds of smaller companies, effectively trading large concentrated exposure to seven names for a far more diversified equity book. Orlich said valuations in public equity markets look high and concentrated in a few stocks that could underperform, while private-company pricing is more attractive and could cushion the fund against a public-market downturn.
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Start your free 14-day trialWho’s affected
- Magnificent Seven (AAPL, MSFT, NVDA, AMZN, GOOGL, META, TSLA) — the stocks whose holdings were cut; sentiment read-through to AI-capex beneficiaries more broadly (chip stocks, neocloud names like CoreWeave). Potential beneficiaries: private-equity-oriented managers as institutional capital rotates toward private markets.