New York State Teachers Retirement System Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

The scale of the institution is currently in a phase of strategic consolidation . While the total portfolio value remains massive at over $51 billion, the activity in Q4 2025 reveals a pervasive trend of "trimming at the top." Almost every major technology holding—the engines of market growth over the last several years—saw a reduction in share count, typically ranging between 2% and 4%. This behavior is characteristic of a mature, disciplined pension fund that refuses to let "winners run" to the point where they create dangerous concentration risks. When a single stock like NVIDIA (NVDA) reaches over 7% of a $51 billion portfolio, a fiduciary must ask whether the risk of a localized correction outweighs the potential for further gains. NYSTRS has clearly answered by opting for a systematic de-risking strategy .

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

II. Sector Allocation Analysis

The 13.34% allocation to Financials serves as a critical counterbalance to the high-growth Technology sector. Financials, including major holdings like JPMorgan Chase (JPM) and Bank of America (BAC), are sensitive to interest rate environments and credit cycles. By maintaining a double-digit weight in this sector, NYSTRS is positioning itself to benefit from a "higher-for-longer" interest rate environment, which typically boosts Net Interest Margins (NIM) for major banks. This allocation also reflects a bet on the resilience of the American consumer and the stability of the domestic credit market.

The roughly 10% allocations to both Communication Services and Healthcare represent two different sides of the NYSTRS strategy. Communication Services (dominated by Alphabet and Meta) is treated as a "Growth" extension, providing exposure to digital advertising and AI platforms. Conversely, the 9.68% in Healthcare (Eli Lilly, UnitedHealth, Johnson & Johnson) acts as a defensive moat . Healthcare companies often possess "inelastic demand" and strong pricing power, making them ideal holdings for a pension fund that needs to withstand inflationary pressures or economic slowdowns. The fact that Healthcare remains a top-5 sector suggests NYSTRS is not abandoning its defensive guardrails despite the tech-heavy nature of the current market.

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

III. Top 10 Holdings Deep Dive

NVIDIA remains the undisputed #1 holding for NYSTRS, with a market value of $3.69 billion . This position is a "conviction holding" that has likely generated astronomical returns for the pension fund since its initial entry (listed as 2013). However, the 2.97% reduction in shares this quarter is a significant signal.

The Top 10 holdings reveal a "Barbell Strategy" that is heavily weighted toward one side. On one end, you have the hyper-growth, AI-centric tech giants (NVDA, AVGO, MSFT). On the other, you have the cash-flow machines with massive moats (AAPL, GOOGL, AMZN, BRK.B). The systematic 2-3% reduction across almost all these names suggests that NYSTRS is currently in a "Maintenance Mode." They are not changing their fundamental belief that these companies will rule the 21st-century economy, but they are acknowledging that the "market's enthusiasm" may have outpaced "fundamental reality" in the short term.

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

IV. Major Buys/Additions

The total "buy" scale this quarter is dwarfed by the "sell" scale. This indicates that NYSTRS is in a "Net Cash Accumulation" or "De-leveraging" phase. They are recouping billions from their trims in NVDA, MSFT, and AAPL, but they are only reinvesting a tiny fraction of that back into the equity market. 1. Fixed Income : To lock in higher yields currently available in the bond market. 2. Private Equity/Real Assets : To diversify away from public equity volatility. 3. Cash Equivalents : To prepare for a potential market correction or to meet upcoming pension payout obligations.

The additions to BAC and LRCX slightly shift the portfolio's risk profile toward "Cyclical Quality." By adding to these names, NYSTRS is marginally reducing its "Duration Risk" (sensitivity to interest rates affecting high-multiple growth stocks) and increasing its exposure to "Tangible Assets" and "Financial Intermediation." This move increases the portfolio's "defensiveness" without sacrificing exposure to the long-term themes of economic growth and technological advancement.

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

V. Major Sells and Exits

The "Sell" side of the NYSTRS report is where the most dramatic action occurred in Q4 2025. The institution conducted a "Portfolio Slimming" exercise, exiting several long-term positions entirely and systematically reducing its exposure to the market's biggest winners.

The exit list (COOP, K, IPG, LNW, HBI) reveals a clear pattern: NYSTRS is retreating from "Legacy Models" and "Mid-Cap Cyclicals."

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

VI. Investment Insights and Risk Warnings

The "Infrastructure First" AI Thesis : The rotation from NVDA (the chip designer) to LRCX (the chip-making equipment provider) suggests a more mature approach to the AI theme. NYSTRS is moving from "speculative growth" to "industrial certainty." They are betting on the "factories of the future" rather than just the "software of the moment." 3. The Financials as the New "Safety" : The modest additions to Bank of America, contrasted with the exits of smaller, riskier financial entities, show a "Flight to Quality" within the banking sector. NYSTRS views "Too-Big-To-Fail" money-center banks as a legitimate alternative to defensive staples like utilities or consumer goods. 4. Cleaning the "Tail" : The exit of 44 stocks, many of which were legacy holdings or mid-cap names with structural challenges (IPG, HBI, RC), indicates a "Portfolio Slimming" strategy. NYSTRS is increasing its efficiency by removing "distractions" and focusing on its core 1,600+ positions.

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.