CalPERS Q4 2025 13F Holdings and Activity Report

I. Institutional Overview: The Strategic Evolution of a Global Pension Titan

The California Public Employees' Retirement System, universally recognized as CalPERS , represents one of the most significant forces in the global capital markets. As the largest public pension fund in the United States, its 13F filings are not merely a list of stock holdings; they are a manifestation of a massive fiduciary responsibility to over two million members. In the fourth quarter of 2025, CalPERS’s equity portfolio reached a staggering reported value of $174.88 billion , spread across 1,084 distinct holdings . This scale places CalPERS in a unique category of "mega-institutional" investors, where every move is scrutinized for signals of long-term structural shifts in the global economy.

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II. Sector Allocation Analysis: Navigating the Digital Frontier and Macro Cycles

The 12.23% allocation to Financials serves as a crucial counterbalance to the high-growth tech exposure. Financials, led by giants like JPMorgan Chase (JPM) and Bank of America (BAC) , provide the portfolio with sensitivity to interest rate environments and the overall health of the credit markets. In a period of potentially stabilizing or fluctuating interest rates, these holdings act as a "yield engine" and a proxy for the robustness of the U.S. banking system.

A subtle but important trend in the sector data is the movement from "Hard Tech" to "Integrated Tech." While semiconductors remain a core focus, the massive weights in Microsoft and Alphabet suggest that CalPERS is increasingly focused on the monetization of AI . They are moving from the "picks and shovels" (chips) to the "gold mines" (software and platforms). This rotation is a signal to the market that the institution believes the infrastructure phase of the AI cycle is maturing, and the value-capture phase is beginning.

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III. Top 10 Holdings Deep Dive: The Ballast Stones of a $174B Portfolio

With a market value of nearly $20 billion and a portfolio weight of 11.33% , VOO is the single most important instrument in CalPERS’s equity arsenal. The 21.68% increase in shares this quarter is a monumental shift. This is a "Conviction Core" position.

The top 10 holdings reveal a clear preference for Mega-Cap Growth . By concentrating so much capital in these names, CalPERS is betting on the "Scale Advantage." In a world of AI and global digital platforms, the biggest companies often have the most data, the most capital, and the best talent. CalPERS’s top 10 is a reflection of this reality. The portfolio is designed to capture the compounding power of the world's most dominant business models , while using VOO to ensure broad market participation. This is a high-conviction, institutional-grade strategy that prioritizes quality and liquidity above all else.

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IV. Major Buys/Additions: Offensive Direction and Capital Flow

Where did the money come from? As we will see in Section V, CalPERS trimmed positions in "Old Economy" industrials (RTX), specific healthcare (ABBV), and diversified financials (BRK.B). This represents a "Strategy Rotation" from the "Old Guard" to the "New Guard." CalPERS is recycling capital from companies with slower growth or higher regulatory/cyclical risks into the "Digital Sovereigns" and the broad market index.

These additions have increased the portfolio's "Beta" and "Growth" tilt . By adding to NVDA and VOO, CalPERS is becoming more sensitive to the overall market's direction and the specific performance of the tech sector. However, the additions to PEP and ABT provide a necessary "volatility dampener." Overall, the institution is positioning itself to be more "offensive" in its pursuit of returns, likely anticipating a favorable economic environment in 2026.

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V. Major Sells and Exits: Risk Avoidance and Strategy Adjustment

While CalPERS was an aggressive buyer in Q4 2025, its selling activity was equally strategic. The institution engaged in a "portfolio slimming" exercise, exiting underperforming or "off-thesis" positions and trimming winners to manage risk.

The overall quality of these sells is "Strategic and Proactive." CalPERS is not "panic selling"; it is methodically pruning positions that have either reached their valuation targets (Micron), face structural headwinds (RTX, AbbVie), or no longer fit the "Digital Dominance" theme (IBM). By recouping over $1 billion from these top reductions, CalPERS successfully funded its massive additions to VOO and the AI leaders.

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VI. Investment Insights and Risk Warnings

Sold What: "Old Tech" (IBM), Cyclical Semis (Micron), and Complex Industrials (RTX). 2. Why Sell: To reduce exposure to cyclicality, legacy business models, and specific industrial risks. 3. Bought What: Broad Market Beta (VOO) and AI Infrastructure (NVDA, AVGO, MSFT). 4. Why Buy: To capture the structural growth of AI while ensuring the portfolio doesn't deviate too far from the benchmark (S&P 500). 5. Overall Result: A more concentrated, higher-beta, and more "modern" portfolio that is heavily tilted toward the digital economy.

This analysis report is for informational and educational purposes only. It does not constitute financial, investment, or legal advice. The "estimated amounts" and "motivation inferences" are based on data interpretation and should not be taken as absolute facts. All investments involve risk, including the loss of principal. Investors should conduct their own research or consult with a qualified financial advisor before making any investment decisions.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.