A low-volatility firm bought AT&T, Verizon and Occidental stock. GE sold it. – Christmasisland News
A large firm specializing in low-volatility equity strategies has recently made major changes to its stock investments.
Gateway Investment Advisors bought more
(ticker: T) and
Communications (VZ) stock, initiated a position in
(OXY), and reduced its investment in
General Electric (GE)
in the second quarter. The Cincinnati, Ohio-based advisory disclosed trades in a form filed with the Securities and Exchange Commission, among others.
In response to a request for comment, Gateway said, “These trades were part of regular rebalancing, and do not reflect any forward-looking assessments of individual companies.”
Gateway manages $10.2 billion in assets. According to Gateway’s website, its “low-volatility strategy seeks to capture most of the returns associated with equity market investments, while exposing investors to less risk than other equity investments.”
The advisor bought 301,532 more AT&T shares along with 1.9 million shares of the communications and media giant in the second quarter to the end of June.
AT&T stock hasn’t kept up with the market to date. Shares ended the first half of 2021 flat, and they have slipped 1.5% so far in July.
s&p 500 index,
For comparison, it grew 14.4% in the first half, and is up 0.7% so far in July.
AT&T announced a megadeal in May to combine its media assets including Fintech Zoom, HBO, and Warner Bros. with Discovery (DISCA) into a new third entity, which will be split or split up to shareholders. AT&T stock dropped after announcement; Investors were disappointed by the expected dividend cut, but insiders bought shares.
Gateway bought 130,586 additional Verizon shares to end the second quarter with 1.3 million shares of the communications giant. Verizon stock dropped 4.6% in the first half, and is up 0.8% so far in July.
Verizon reported a weak first quarter in May. Last month, Verizon agreed to sell its stake in digital publisher Complex Networks. Earlier this year, Verizon agreed to sell most of its Yahoo and AOL assets.
Occidental stock rose 80.6% in the first half of the year, and has slipped 17.0% so far in July.
An upbeat outlook for oil prices lifted Occidental stock at the start of the year. Prices have risen, but remain volatile. We have seen that an oil bull has designated Occidental as the preferred stock.
Gateway bought 316,873 Occidental shares in Q2; It had no ownership at the end of March.
The advisor sold 238,313 GE shares as of the end of the second quarter, along with 2.5 million shares of the group. GE stock rose 24.6% in the first half and has slipped 6.8% so far in July.
baron’s It was reported earlier this month that GE stock looked set to see some catalysts. Wall Street seems bullish on stocks. GE’s Larry Culp made our latest list of top CEOs. We credit them with facing “structural problems that have been put off over the years,” as the stock more than doubled in a year.
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.