The California State Teachers’ Retirement System, the nation’s second-largest public pension fund, has significantly changed its investment portfolio, indicating a shift in stock strategy. The pension fund upped its stake in Bitcoin investor MicroStrategy and Latin America-focused financial platform Nu Holdings, selling shares in failing retailer Dollar General and energy drink behemoth Celsius Holdings.
Strategic moves in technology and finance:
CalSTRS reported these trades in a recent Securities and Exchange Commission filing, showing its shifting strategy to managing a portfolio worth around $352.9 billion as of January 31. CalSTRS increased its holding in MicroStrategy by 32,191 shares, bringing its total to 285,785. MicroStrategy, known for its aggressive Bitcoin collecting approach, achieved a whopping 358% stock increase in 2024.
CalSTRS also increased its investment in Nu Holdings by acquiring 1.1 million additional shares, bringing its total interest to 1.4 million. High-profile investors, including Warren Buffett and Cathie Wod, have favored the fintech business that operates Nubank. Nu Holdings’ shares surged 24% in 2024 and another 3.8% in early 2025, demonstrating the endurance of Latin America’s digital banking market.
Limiting Exposure to Failing Stocks:
While boosting its holding in high-growth stocks, CalSTRS cut its exposure to Dollar General by selling 69,336 shares, reducing its total position to 281,385 shares. The discount retailer’s shares fell 44% in 2024, hampered by earnings failures and cautious forward projections. Although some experts remain hopeful, believing that a little operational improvement may drive investor interest, CalSTRS chose to reduce its stake.
CalSTRS’s Investment Strategy:
The pension fund’s stock modifications demonstrate its strategy to balancing high-growth prospects with risk management. While MicroStrategy and Nu Holdings have excellent growth potential, Dollar General and Celsius Holdings have seen substantial headwinds, which may have encouraged CalSTRS to alter its investment.
CalSTRS’ representative declined to comment on individual holdings, adding that the portfolio is managed using active and passive techniques, with holdings altering in response to rebalancing efforts, business actions, and market dynamics. As the investing environment evolves, CalSTRS’ most recent portfolio adjustments give essential insights into how significant institutional investors navigate the ever-changing stock market. The pension fund’s diversified and strategic approach is crucial in determining market trends and investor sentiment.
