Ed Lin
The investment arm of one of the world's biggest insurers just made major changes in its U.S.-traded investments, selling off 2024 winners and buying up a laggard.
MEAG Munich Ergo Asset Management slashed positions in tobacco firm Philip Morris International, iPhone maker Apple, and payments firm PayPal Holdings, and materially raised its stake in apparel retailer Lululemon Athletica in the fourth quarter. MEAG, which handles all the investment activities for Munich Re, disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission.
MEAG didn't respond to a request for comment on the investment changes. As of September 2024, it managed assets of about $370 billion.
Philip Morris stock soared 28% in 2024, edging out the 23% rise in the S&P 500. So far this January, shares are up 5.8%, while the index has gained 3.7%.
The tobacco firm reported strong third-quarter earnings in late October, and Philip Morris noted that smoke-free revenue is "growing very fast." Earlier in January, the Food and Drug Administration cleared America's most popular nicotine pouch, Philip Morris' Zyn, to stay on the market.
The money manager sold 89,740 Philip Morris shares to end the fourth quarter with 324,600 shares.
MEAG sold 46,820 Apple shares to end December with 244,390 shares.
Apple stock has been weak so far in 2025, and Nvidia recently passed it again in market capitalization to become the most valuable public company in the world. Sales of iPhone are slumping in China, the world's largest market for smartphones
Apple stock rose 30% in 2024, and so far in 2025 shares are down 11%.
PayPal stock leapt 39% in 2024, and shares are up 4.4% so far in January.
Amazon.com announced in September it would let customers use PayPal to buy certain products. In late October, PayPal's strong third-quarter earnings were overshadowed by weak revenue guidance.
MEAG sold 70,100 PayPal shares in the fourth quarter to cut its stake to 38,625 shares.
MEAG bought 90,545 Lululemon shares to end the fourth quarter with 90,880 shares.
Lululemon earlier this month raised earnings and revenue guidance, but the response was muted, perhaps because the company had reported a strong fiscal third quarter only weeks before.
Lululemon stock dropped 25% in 2024, and so far in January shares are up 4.6%.
Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
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January 31, 2025 21:30 ET (02:30 GMT)
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